Saved Help Save & Exit Check Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. FANNING COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (loss) $ 169,000 $249,000 (126,000 (75,000) (17,000) (25,000) 26,000 149,000 (42,000) (43,000) 6,000) 15, eee $ (22,000) $ 91,000 $ 252,000 (80,00) (24,000) 148,000 (28,000) $120,000 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income $ 0 Required B > Prey 3 of 4 Nes Required A Required B Prepare comparative income statements for the company as a whole under two alternatives: (1 and (2) the elimination of Segment A. FANNING COMPANY Comparative Income Statements for the Year 2 Keep Seg. A Eliminate Seg. A Decision Sales $ Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income 0 $ $ 0 $ Required A Prey 3 of 4 Next >