When Mr.Ding L.Berry,president and chief executive of Berry,Inc. ,first saw the segmented income statement below,he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!" *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.
Required:
Recommend which segments,if any,should be eliminated.Prepare a report in good form to support your answer.
A segmented income report,without the allocation of common fixed expenses,will provide the basis for deciding which segments to drop.

Question

When Mr.Ding L.Berry,president and chief executive of Berry,Inc. ,first saw the segmented income statement below,he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!"  *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.
Required:
Recommend which segments,if any,should be eliminated.Prepare a report in good form to support your answer.
A segmented income report,without the allocation of common fixed expenses,will provide the basis for deciding which segments to drop.

Quizplus · Accepted Answer

The Answer of When Mr.Ding L.Berry,president and chief executive of Berry,Inc. ,first saw the segmented income statement below,he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!"  *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.
Required:
Recommend which segments,if any,should be eliminated.Prepare a report in good form to support your answer.
A segmented income report,without the allocation of common fixed expenses,will provide the basis for deciding which segments to drop.

When MrDing L