me: 02:51 PM/Remaining: 113 in CALCULATO8 4 BACK Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $230,500 and the follewing divisional results. Division I III IV Sales $245,000 $195,000 $495,000 $443,000 Cost of goods sold 195,000 190,000 295.000 245,000 Seling and administrative expenses 67,500 55,000 55,000 45,000 Income (loss) from operations $(17,500) $ (50,000) $145,000 $153,000 Analysis reveals the following percentages of variable costs in each division. IT III IV Cost of goods sold 66 % 87 % 77 % 73 % Seling and administrative expensesi 37 57 47 57 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 1 and II. (Enter negative amounts using either anegative sign preceding the number e.945 or parentheses e.g. (45).) Division I Division II Contribution margin Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g.-45 ar parentheses e.g. (45).) dy Net Income Continue Eliminate Increase (Decrease) Contribution margine Fixed costs Cost of goods sold Seling and administratives MacBook Air S US Weygandt, Managerial Accounting, 7e Blackboard: Towson University: Weygandt, Managerial Accounting, 7e (Bs End Time: 02:S1 PM/Remaining: 112 min CALCULATOm BACK ES Sellng and administrative Total fieed expenses Income (loss) from operations $ Prepare an incremental analysis concerming 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) Continuer Eliminate Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations What course of action do you recommend for each division? Division D Division I Prepare a columnar condensed income statement for Brisin Company, assuming Division T is eiminated. Division 1t's unavoidable fixed costs are allocated equally to the continuing divisions (Round answers to o decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 7 BRISLIN COMPANY CVP Income Statement LERATOR BACE Prepare a columnar condensed income statement for Brislin Company, assuming Division II is elminated. Division 1I's unavoidable foxed 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 III IV Total Sales Variable costs Cost of goods sold Selling and administratives Total vanable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations tudy Open Show Work Click if you would like to Show Work for this question: Question Attempts: 0 of 1 used SUBMIT ANSWER MacBook A
