Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

= Current Attempt in Progress Cullumber Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
= Current Attempt in Progress Cullumber Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $211.200 and the following divisional results. Division II IV Sales $254.000 $197.000 $499.000 $451.000 197.000 192.000 302.000 246,000 Cost of goods sold Selling and administrative expenses 69.800 63.000 65.000 55.000 $(12.800) Income (loss) from operations $(58,000) $132,000 $150,000 Analysis reveals the following percentages of variable costs in each division 1 = 111 IV 67% 90 % 82% 775 Cost of goods sold Selling and administrative expenses 41 62 51 60 Discontinuance of any division would save 50% of the feed 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 correct Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the numbers -45 or parentheses es. (451) Division Division 11 Contribution margin $ 93392 $ -14860 e Textbook and Media 8.11/10 Continue Eliminate Increase (Decrease) Contribution margin s 93392 0 $ -93392 Fixed costs Cost of goods sold 65010 32505 i 32505 41182 20591 1 20591 Selling and administrative Total fixed expenses 1061921 53096 i 53096 $ $ -53096 12800 Income (loss) from operations -40296 Continue Eliminate Net income Increase (Decrease Contribution margin $ -14860 0 Fixed costs 14800 Cost of goods sold 19200 i 9600 9500 Selling and administrative 23940 11970 11970 Total fixed expenses 43140 21570 21570 Income (loss) from operations $ 58000 -21570 36430 Your answer is correct What course of action do you recommend for each division Division 1 Continued Division II Eliminated e Textbook and Media Prepare a columnar condensed income statement for Cullumber Company, assuming Division It is eliminated. Division is unavoidable foed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a notiversion preceding the number eg -45 or parentheseses (450) CULLUMBER COMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Divisions IV Sales $ 254000 197000 4510 Variable costs Cost of goods sold 65010 19200 SESE uestion 014 8.11 7 10 Divisions 1 III IV Total 254000 197000 451000 902000 65010 19200 56580 140790 41182 23940 22000 87122 ORCE DOOD DOC 106192 43140 78580 22792 147808 153960 372420 674008 Divisions III IV Sales 250000 197000 $ 4510 Variable costs Cost of goods sold 65010 19200 56SE 41182 Selling and administrative 23940 2200 MORE 100 106192 43140 78 Total variable costs 153860 37240 Contribution margin Question 4 of 4 8.11 / 10 Contribution margin 147800 15380 Fixed costs Cost of soods sold 131990 172000 1094 3300 Selling and administrative 28613 39060 POBO 160608 Totalfixed costs 211860 22242 000 $ 150C -12800 58000 Income (loss from operations 147808 153560 372420 170000 131990 172800 189420 494210 28618 39060 33000 100678 160608 211860 000 222420 594830 -58000 $ 15000 S - 12800 79200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

d Tree Graphs Which graph below is a tree graph? Z

Answered: 1 week ago