Brislin Company has four operating divisions During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results Division I II III IV Sales $250,000 $200,000 $500,000 $450,000 Cost of goods sold 200,000 192,000 300,000 250,000 Selling and administrative expenses 75,000 60,000 60,000 50,000 Income (loss) from operations $ (25,000) $ (52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division I II III IV Cost of goods sold 70 90 80 75 Selling and administrative expenses 40 60 50 60 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 Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated Division IIs unavoidable fixed costs are allocated equally to the continuing divisions

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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results.

	Division
	I	II	III	IV
Sales	$250,000	$200,000	$500,000	$450,000
Cost of goods sold	200,000	192,000	300,000	250,000
Selling and administrative expenses	75,000	60,000	60,000	50,000
Income (loss) from operations	$ (25,000)	$ (52,000)	$140,000	$150,000

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

	I		II		III		IV
Cost of goods sold	70	%	90	%	80	%	75	%
Selling and administrative expenses	40		60		50		60

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.

Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division IIs unavoidable fixed costs are allocated equally to the continuing divisions.