I need Section C answered. Thanks
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 $211,100 and the following divisional results. Division II III IV Sales $246,000 $195,000 $498,000 $452,000 Cost of goods sold 198,000 192,000 304,000 247,000 Selling and administrative expenses 55,000 56,000 76,900 51,000 $ (28,900) $ (52,000) Income (loss) from operations $138,000 $154,000 Analysis reveals the following percentages of variable costs in each division. II III IV Cost of goods sold 73 % 92 % 77 % 79 % Selling and administrative expenses 41 60 48 62 the fixed costs and expenses Discontinuance of any division would save 50% 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. (a) Your answer is correct. 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 I Division II Contribution margin 69931 -14640 (b1) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Eliminate Continue Contribution margin 69931 -69931 Fixed costs Cost of goods sold 53460 26730 26730 Selling and administrative 22686 45371 22686 Total fixed expenses 49416 98831 49416 Income (loss) from operations -49416 -28900 -20516 $4 $4 Click if you would like to Show Work for this question: Open Show Work (b2) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin -14640 14640 Fixed costs Cost of goods sold 15360 7680 7680 Selling and administrative 11000 22000 11000 Total fixed expenses 37360 18680 18680 Income (loss) from operations -52000 -18680 33320 Click if you would like to Show Work for this question: Open Show Work () Your answer is correct. What course of action do you recommend for each division? Division I Continued Division II Eliminated + Click if you would like to Show Work for this question: Open Show Work (c) 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. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions IV Total III 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 $
