answer the ones that are red
Problem 12-5 Grouper Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $212,900 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $253,000 203,000 75,100 $ (25,100) Division II III $198,000 $505,000 194,000 295,000 57,000 61,000 $ (53,000) $149,000 IV $445,000 253,000 50,000 $142,000 Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses I 74 % 41 II 91 % 58 III 80 % 50 IV 74 % 57 Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II), Consensus is that one or both of the divisions should be discontinued. Your answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Division I Division II Contribution margin 71,989 -11,600 Your answer is partially correct. Try again. Prepare a columnar condensed income statement for Grouper Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) GROUPER COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions III IV Total Sales 253,000 505,000 445,000 1,203,000 Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative DIO Total fixed costs Income (loss) from operations Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to o decimal places, e.g. 1525. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin -71,989 Fixed costs Cost of goods sold 26,390 26,390 Selling and administrative 22,155 22,155 Total fixed expenses 48,545 48,545 Income (loss) from operations -48,545 -23,445 LINK TO TEXT Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to O decimal places, e.g. 1525. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Contribution margin -11,600 11,600 Fixed costs > Cost of goods sold 8,730 8,730 Selling and administrative 23.94 11,970 11,970 Total fixed expenses 20,700 20,700) Income (loss) from operations -20,700 32,300
