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Brian Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207,400 and the following divisional
Brian Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207,400 and the following divisional results, 5ales Cost of goods sold Selling and administrative expenses Income foss) from operations Division I 111 IV $249,000 $200,000 $490,000 $446,000 205,000 192,000 305.000 248.000 73.600 60,000 59,000 45,000 $ 27,600) $($2,000) $134,000 $153,000 Analysis reveals the following percentages of variable costs in each division 1 TI 11 IV Cost of goods sold 60580174 Selling and administrative expenses 40 59 47 59 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 11). Consensus is that one or both of the division should be discontinued (a) Your answer is partially correct. Try again. Carroute the contribution margin for Division 1 and It (Enter negative amounts using either a negative won preceding the number .. 45 or parenthese.. (45).) Division 1 Division 11 Contribution margin 00960 10960
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