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Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $207,400 and the following divisional

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Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $207,400 and the following divisional results. Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $249,000 $200,000 $498,000 $446,000 192,000 305,000 248,000 59,00045,000 $ (27,600) (52,000) $134,000 $153,000 205,000 71,60060,000 Analysis reveals the following percentages of variable costs in each division IV 74 % 59 Cost of goods sold 68 % 88 % 59 81% 47 Selling and administrative expenses 40 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 II's unavoidable fixed costs are allocated equally to the continuing divisions. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions IV Total Sales 249000 498000 446000 Variable costs Cost of goods sold 139400 247050 183520 Selling and administrative 26550 Total variable costs 168040 274780 Contribution margin 80960 223220 Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations

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