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Jordan Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. JORDAN 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) A $ 171,000 (121,000) (21,000) 29,000 (39,000) (6,000) $ (16,000) B $253,000 (76,000) (23,000) 154,000 (41,000) (16,000) $ 97,000 C $255,000 (89,000) (31,000) 135,000 (40,000) 0 $ 95,000 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. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Advertising expense Cost of goods sold Sales commissions Effect on income $ 0 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. JORDAN COMPANY Comparative Income Statements for the Year 2 Keep Seg. A Eliminate Seg. A Decision Sales $ 0 $ 0 Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income $ 0 $ 0

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