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Help me on this. Current Attempt in Progress Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income
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Current Attempt in Progress 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 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 205,000 70,000 $ 125,000) $198.000 189,000 63.000 $ (54.000) $496,000 297,000 61,000 $ 138,000 IV $443,000 255,000 54,000 $134,000 Analysis reveals the following percentages of variable costs in each division. 1 II II IV Cost of goods sold Selling and administrative expenses 69 % 37 89 % 61 80 % 51 74 % 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 Division 11 Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Division Division 11 Contribution margin $ e Textbook and Media 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 Increasc (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 Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg: (45).) Continue Net Income Increase (Decrease) Eliminate Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ e Textbook and Media What course of action do you recommend for each division? Division 1 Division 11 eTextbook and Media 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. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions IV Sales 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 operations $ $ CVP Income Statement For the Quarter Ended March 31, 2020 Divisions 1 IV Total $ $ $ $ $ e Textbook and MediaStep by Step Solution
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