Accounting Publishers, Inc. has prepared income statements segme

Accounting Publishers, Inc. has prepared income statements segmented by divisions, but management is still uncertain about actual peIformance. Financial information for May is given as follows:

Management is concerned about the Professional Division and requests additional analysis. Additional information regarding May operations of the Professional Division is as follows:

The professional accounting books are sold to auditors and controllers. The current information on these markets is as follows:

Required
a. Prepare an income statement segmented by product for the Professional Division. Include a column for the division as a whole.
b. Prepare an income statement segmented by market for the accounting books of the Professional Division.
c. Evaluate which accounting books the Professional Division should keep or discontinue in the short run.
d. What is the correct long-run decision? Explain fully, including any possible risks associated with your recommendation.



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