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Question 8 (10 points) ElecMech Company has two divisions, Electrical and Mechanical. The company's overall...

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Question 8 (10 points) ElecMech Company has two divisions, Electrical and Mechanical. The company's overall sales are $300,000 for the year ended July 31, 2021. The Electrical Division has sales of $100,000 and a contribution margin ratio of 40%. The Mechanical Division has a variable expense ratio of 75% and fixed expenses of $20,000 (these expenses would discontinue if the Mechanical Division is dropped). Total fixed expenses are $75,000; of this amount, $5,000 is unavoidable regardless of which divisions are kept or dropped. Required: 1. Prepare a segmented income statement in good form. (9 marks) 2. Why is a segmented income statement useful if management is considering dropping a segment? (1 mark) DO Format V BI U

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