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in Company has four operating divisions. During the first quarter of 2020, company reported aggregate income from operations of $213,000 and the following divisional P7.5A
in Company has four operating divisions. During the first quarter of 2020, company reported aggregate income from operations of $213,000 and the following divisional P7.5A (LO 6), A Division 500,000 $450,000 250,000 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations 192,000 75,000 (25,000)(52 S(52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division IV 75% 60 Cost of goods sold Selling and administrative expenses T0% 40 90% 60 50 for that division. Discontinuance of any division would save 50% of the fixed costs and expenses Top management is very concerned about the unprofitable divisions ( and I). Consensus is that one or both of the divisions should be discontinued a. Compute the contribution margin for Divisions I and II. an incremental analysis concerning the possible discontinuance of Division I and condensed income statement for Brislin Company, assuming Division II is (2) Division I1. What course of action do you recommend for each division? statement c. Prepare a columnar eliminated. (UIse the CVP format.) Division Il's unavoidable fixed costs are allocated equally to the continuing divisions d. Reconcile the total income from operations ($213,000) with the total income from operations with- out Division
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