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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $210,600 and the following divisional

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $210,600 and the following divisional results.

Division
I II III IV
Sales $245,000 $197,000 $504,000 $450,000
Cost of goods sold 200,000 192,000 301,000 249,000
Selling and administrative expenses 72,400 63,000 58,000 50,000
Income (loss) from operations $ (27,400) $ (58,000) $145,000 $151,000

Analysis reveals the following percentages of variable costs in each division.

I II III IV
Cost of goods sold 73 % 91 % 82 % 75 %
Selling and administrative expenses 39 59 50 61

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.

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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 70920 -14890 Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sh number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative CODI DAND DODO Total fixed expenses Income (loss) from operations Fone quaner Ended March 31, ZUZU Divisions I III IV Total Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs $ Income (loss) from operations

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