Question
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207,400and the following divisional results.
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207,400and the following divisional results.
Sales$249,000 $200,000 $498,000 $446,000
Cost of goods sold205,000 192,000 305,000 248,000
Selling and administrative expenses71,600 60,000 59,000 45,000
Income (loss) from operations$ (27,600)$ (52,000)$134,000$ 153,000
Analysis reveals the following percentages of variable costs in each division.
Cost of goods sold68% 88% 81% 74%
Selling and administrative expenses40 59 47 59
iscontinuance of any division would save 50% of the fixed costs and expenses for that division.
I need help with making an incremental analysis concerning the possible discontinuance of Division I and Division II
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