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Zachary Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.

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$\backslash$table$[[\backslash$table$[[$ZACHARY COMPANY$],[$Income Statements for Year $2]],,,],[$Segment$,$A$,$B$,2,-,,$C$],[$Cost of goods sold,$(121,000),(91,000),(83,000)],[$Sales commissions,$(21,000),(29,000),(24,000)],[\backslash$table$[[$General fixed operating expenses $($allocation of president's salary$)],[$Advertising expense $($specific to individual divisions$)]],\backslash$table$[[\backslash$table$[[(43,000)],[(5,000)]]]],\backslash$table$[[\backslash$table$[[(34,000)],[(10,000)]]]],\backslash$table$[[\backslash$table$[[(40,000)],[0]]]]],[$Net income $($loss$),$$$(25,000),$$$76,000,$$$112,000]]$

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$.$

$\backslash$table$[[$Relevant Revenue and Cost Items for Segment A$],[$Cost of goods sold,$],[,],[,],[,],[$Effect on income,$$]]$

Required A

Required B $>$

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