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Hele I System Announcements NEXT Problem 20-5A (Part Level Submission) Brislin Company has four operating divisions. During the first quarter of 2017, the company reported

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Hele I System Announcements NEXT Problem 20-5A (Part Level Submission) Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $218,700 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses69,300 Income (loss) from operations $253,000$195,000 $501,000 $447,000 97,000194,000296,000 250,000 61,00048,000 (13,300) (61,000) $144,000 $149,000 62,000 Analysis reveals the following percentages of variable costs in each division IV 89 % 79 % 76% Cost of goods sold Selling and administrative expenses 40 57 5259 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 I). Consensus is that one or both of the divisions 72 % should be discontinued 4:27 P 3/10/20 ^4x

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