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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional

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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results. Division I III IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 205,000 70,000 $ (25,000) II $198,000 189,000 63,000 $ (54,000) $496,000 297,000 61,000 $ 138,000 $443,000 255,000 54,000 $134,000 Analysis reveals the following percentages of variable costs in each division. I II III IV 69 % 89 % 80 % 74 % Cost of goods sold Selling and administrative expenses 37 61 51 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. Your answer is partially correct. Try again. 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).) Continue Eliminate Net Income Increase (Decrease) Contribution margin 82650 -82650 Fixed costs Cost of goods sold 63550 20790 20790 X Selling and administrative 44100 24570 24570 x Total fixed expenses 107650 45360 45360 Income (loss) from operations -25000 -45360 -37290 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

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