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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $214,000 and the following divisional
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $214,000 and the following divisional results. Cost of goods sold Selling and administrative expenses Income loss) from operations Division 1 THE IV $249,000 $200,000 $504,000 $450,000 199.000 192,000 29,000 249,000 76,000 64,000 50,000 5 (26,000 555.000) $144,000 5151,000 Analysis reveals the following percentages of variable costs in each division. 1 11 Cost of goods sold Selling and administrative expenses 365 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 1 Division 11 Contribution margin 72100 Click if you would like to show Work for this question: Open Show work (67601 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 15 used (11) 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).) Net Income Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Totalfixed expenses Income stromerations Click if you would like to show Work for this question: Open Show Work
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