Please do not give solution in image format thanku SegmentSalesCost of goods soldSales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)GIBSON COMPANYIncome Statements for Year 2Complete this question by entering your answers in the tabs below.Required A Required BPrepare a schedule of relevant sales and costs for Segment A.Relevant Rev, and Cost items for Segment ASalesEffect on income$ 165,000(122,000)(18,000)25,000(43,000)(3,000)B$245,000 $253,000(91,000)(93,000)(29,000)(26,000)Requireda. Prepare a schedule of relevant sales and costs for Segment A.b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)the elimination of Segment A.125,000(36,000)(15,000)$ (21,000) $ 74,000134,000(26,000)e$108,000

Name: Please do not give solution in image format thanku SegmentSalesCost of
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Description: Please do not give solution in image format thanku SegmentSalesCost of goods soldSales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (

If there is more than one product in a company, product line analysis would be done. Segmented…

Business

Accounting

Segment Sales Cost of goods sold Sales commissions GIBSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) A $ 165,000 (122,000) (18,000) 25,000 (43,000) (3,000) B $245,000 $253,000 (91,000) (93,000) (29,000) (26,000) 125,000 (36,000) (15,000) $ (21,000) $ 74,000 $108,000 134,000 (26,000) e 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.

Segment Sales Cost of goods sold Sales commissions GIBSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) A $ 165,000 (122,000) (18,000) 25,000 (43,000) (3,000) B $245,000 $253,000 (91,000) (93,000) (29,000) (26,000) 125,000 (36,000) (15,000) $ (21,000) $ 74,000 $108,000 134,000 (26,000) e 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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPB

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