20-5A Brislin Company has four operating divisions. During the firs n the company reported aggregate income from operations o divisional results. Division Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 $200,000 $500,000 $450,000 250,000 50,000 200,000 192,000 300,000 25 75,000 60,000 60,000 s (25,000) $(52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. 2 1 IV 75% 70% Cost of goods sold Selling and administrative expenses 90% 60 0 80% 50 40 60 n would save 50% of the fixed costs and expenses for that concerned about the unprofitable divisions (I and II). Con- 5 Discontinuance of any division division. sensus is that one or both of the divisions should be discoable