When Mr Ding L

Essay

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.