Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $204,000 and the following divisional

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $204,000 and the following divisional results. Division I II IV Sales $250,000 $198,000 $499,000 $446,000 Cost of goods sold 198.000 192,000 298,000 254,000 Selling and administrative expenses 75,000 63.000 63,000 46.000 Income (loss) from operations $ (23,000) $ (57,000) $138.000 $146,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 69 % 90 % 80 % 74 % Selling and administrative expenses 41 62 52 58 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. 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 $ $ e Textbook and Media Assistance Used e Textbook Video Question Part Score --/0.4 Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ e Textbook and Media Question Part Score --/0.4 Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin $ $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ $ e Textbook and Media Question Part Score --/0.4 What course of action do you recommend for each division? Division Division 11 e Textbook and Media Question Part Score --/0.4 BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions III IV Sales $ $ $ TA $ $ 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 $ FA $ HA $ $ operations BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions III IV Total $ $ $ $ $ $ $ $ GA $ e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Responsibility

Authors: Tom Cannon

2nd Edition

0273738739, 9780273738732

More Books

Students also viewed these Accounting questions