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Solomon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. SOLOMON COMPANY Income Statements for Year 2 Segment Sales $ 166,000 $236,000 $263,000 Cost of goods sold (125,000) (86,000) (86,000) Sales commissions (18.000) (30,000) (26,000) Contribution margin 23,000 120,000 151,000 General fixed operating expenses (allocation of president's salary) (42,000) (51,000) (43,000) Advertising expense (specific to individual divisions) (4.000) (11,000 Net income (109) $ 123,000) $ 58,000 $108,000 0 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 Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost Items for Segment A Sales Effect on income Complete this question by entering your answers in the tabs below. Required A Required 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. SOLOMON COMPANY Comparative Income Statements for the Year 2 Decision Koep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income

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