Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Blossom Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $ 214,200 and the following

image text in transcribed
image text in transcribed
Blossom Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $ 214,200 and the following divisional results. Division II HII IV $ 443,000 247.000 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $ 254,000 $ 199,000 $ 501,000 204,000 189,000 301,000 69,800 60,000 57,000 $(19,800) $(50,000) $ 143,000 55,000 $ 141.000 Analysis reveals the following percentages of variable costs in each division. II III IV 67 % 90 % 82 % 7596 Cost of goods sold Selling and administrative expenses 39 62 50 58 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. (a) Your answer is correct Compute the contribution margin for Divisions and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.s. (45).) Division 1 Division 11 Contribution margin 90098 -8300 (62) Prepare an incremental analysis concerning the possible discontinuance of Division 11. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Incor Increase (Dec $ Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (53) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Routledge Handbook Of Environmental Accounting

Authors: Jan Bebbington, Carlos Larrinaga, Brendan O'Dwyer, Ian Thomson

1st Edition

0367724901, 9780367724900

More Books

Students explore these related Accounting questions

Question

please dont use chat gpt or other AI 3 8 5 .

Answered: 3 weeks ago