Problem: Module 6 Textbook Problem 7 Learning Objective: 6-4 Make appropriate segment elimination decisions Campbell Company operates three segments. Income statements for the segments imply that profitability could be improved Segment A were eliminated. CAMPBELL COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin $ 169,000 (127,000) (17,000) $237,000 $265,000 (76,000) (75,000) (24,000) (25,000) General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 25,000 (41,000) (6,000) 137,000 165,000 (52,000) (38,000) (18,000) 0 Net income (loss) $ (22,000) $67,000 $127,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.