Thornton Company operates three segments. Income statements for the segments imply that profitability could be improved

Post by **answerhappygod** » Mon Apr 25, 2022 7:39 am

: Thornton Company Operates Three Segments Income Statements For The Segments Imply That Profitability Could Be Improved 1 (44.72 KiB) Viewed 27 times

: Thornton Company Operates Three Segments Income Statements For The Segments Imply That Profitability Could Be Improved 2 (33.85 KiB) Viewed 27 times

: Thornton Company Operates Three Segments Income Statements For The Segments Imply That Profitability Could Be Improved 3 (46.51 KiB) Viewed 27 times

Thornton Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. THORNTON 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 floss) $ 165,000 $245,000 (130,000) (76,000) (15,000) (28,000) 20,000 141,000 (38,000) (40,000) (6.000) (14,000) $ (24,000) $ 87,000 $245,000 (86,000) 23,000) 136,000 (36,000) 0 $100,000 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 < Prev 4 of 5 Next >

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 Cost of goods sold Sales commissions Advertising expense Effect on income $ 0 (Required A Required B < Prev 4 of 5 Next

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. ces Required A RequRed 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. THORNTON 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 $ Not Income 0 0 $ < Prev 4 of 5 !!! Next > A N O