When MrDing 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.
A segmented income report,without the allocation of common fixed expenses,will provide the basis for deciding which segments to drop.