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i couldnt fit part c in one photo so there is some overlap Blossom Company has four operating divisions. During the first quarter of 2020,
i couldnt fit part c in one photo so there is some overlap
Blossom Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $ 214.200 and the following divisional results. Division II IV $ 254.000 $ 199,000 $ 501.000 $ 443,000 204,000 189.000 301.000 247,000 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations 69,800 60,000 57,000 55.000 $(19,800) $150,000) $ 143,000 $ 141.000 Analysis reveals the following percentages of variable costs in each division 1 11 III IV 67% 90 % 82 % 75 % Cost of goods sold Selling and administrative expenses 39 62 50 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 (l and I1. Consensus is that one or both of the divisions should be discontinued. Your answer is correct. Compute the contribution margin for Divisions 1 and 11. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (45).) Division Division II Contribution margin $ 90098 -8300 eTextbook and Media Attempts: 1 of 3 used (61) Your Answer Correct Answer Your answer is correct Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the number e.s. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate 90098 $ -90098 67320 i 33660 i 33660 42578 21299 i 21289 109898 54949 i 54949 - 19800 $ -54949 -35149 e Textbook and Media Solution Attempts: 3 of 3 used [62) Your answer is correct Prepare an incremental analysis concerning the possible discontinuance of Division 11. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.s. (45).) Net Income Increase (Decrease Continue Eliminate 3300 300 18900 9450 9450 22800 11400 11400 51700 20650 2850 :50000 -20550 29330 e Textbook and Media Attempts: 2 of 3 used (63) Your answer is correct What course of action do you recommend for each division? Division Continued Division 11 Eliminated e Textbook and Media Attempts: 2 of 3 used 10 Prepare a columnar condensed Income statement for Blossom Company, assuming Division Il is eliminated Prepare a columnar condensed income statement for Blossom Company, assuming Division Il 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 e.g. -45 or parentheses e.g- (45).) Divisions = IV Sales 254000 501000 $ Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative I Total fixed costs Income (loss) from operations $ $ eTextbook and Media Save for Later Attempts:0 of 3 used Submit Answer (c) Prepare a columnar condensed income statement for Blossom 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 e.g. - 45 or parentheses e.s. (45).) a Divisions HII IV Total $ 501000 $ 443000 $ 1198000 1 e Textbook and Media Save for Later Attempts:0 of 3 used Submit Step by Step Solution
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