Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if SegmentA were eliminated.ZACHARY COMPANYIncome Statements for Year 2SegmentSalesCost of goods soldSales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)Requireda. Prepare a schedule of relevant sales and costs for Segment AA$ 168,000(126,000)(20,000)22,000(34,000)(6,000)B$ 235,000(79,000)(32,000)124,000(51,000)(19,000)$ (18,000)$ 54,000$ 253,000(82,000)(28,000)143,000(34,000)$ 109,000b. 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 AComplete 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 Revenue and Cost Items for Segment AEffect on income$

Name: Zachary Company operates three segments Income statements for the seg
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Description: Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if SegmentA were eliminated.ZACHARY COMPANYIncome Statements for Year 2SegmentSalesCost of goods soldSales commissionsContribution

Comparative income statement:When a statement provides information on the financial status of the…

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Segment Sales Cost of goods sold Income Statements for Year 2 Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) $ (18,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) 0 $ 109,000

Segment Sales Cost of goods sold Income Statements for Year 2 Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) $ (18,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) 0 $ 109,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 7SPA: INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors...

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INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors has divided its business into two departments: commercial sales and industrial sales. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental gross profit and total operating income. 2. Calculate departmental gross profit percentages.
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON 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). Complete this question by entering your answers in the tabs below. Required A Required B A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 с $ 247,000 (83,000) (31,000) 133,000 (26,000) 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. $ 107,000
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