(b) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal...
Question:
(b) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Division I | Continue$ | Eliminate$ | Net Income Increase/(Decrease)$ |
Contribution (as above) | |||
Fixed Cost | |||
COGS | |||
S & A Expenses | |||
Total Fixed Expenses | |||
Income loss from Operation |
(c) Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).
Division Ii | Continue$ | Eliminate$ | Net Income Increase/(Decrease)$ |
Contribution (as above) | |||
Fixed Cost | |||
COGS | |||
S & A Expenses | |||
Total Fixed Expenses | |||
Income loss from Operation |
What course of action do you recommend for each division? Division I Continued or Eliminated?
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt