70.2K

Verified Solution

Link Copied!

WALTON 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) $ 165,000 (125,000) (19.088) 21, eee (40,000) (4,000) $ 23,000) B $236,000 (86,000) (30,000) 120,000 (42,000) (17,808) $ 61,000 $261,000 (89, eee) (24.eee) 148,00 (27,000) $121,000 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 s 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: ( and (2) the elimination of Segment A. WALTON COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin $ 0$ 0 General fixed operating expenses Advertising expense Net Income $ 0 $ 0

Answer & Explanation Solved by verified expert

See Answer