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Need some help preparing a columnar condensed income statement on the last photo. The last column is a total column. Thanks! Wildhorse Company has four
Need some help preparing a columnar condensed income statement on the last photo. The last column is a total column. Thanks!
Wildhorse Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 214,000 and the following divisional results. Division III IV Sales $ 249,000 $ 200,000 $ 504,000 $ 450,000 Cost of goods sold 199,000 192,000 296,000 249,000 Selling and administrative expenses 76,000 63,000 64,000 50,000 Income (loss) from operations $ ( 26,000) $ ( 55,000) $ 144,000 $ 15 1,000 Analysis reveals the following percentages of variable costs in each division. III IV Cost of goods sold 74 % 88 % 79 % 74 % Selling and administrative expenses 39 60 51 61 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. (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 $ 72100 $ -6,760Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) Contribution margin to 72100 $ 0 $ (72100) Fixed costs Cost of goods sold 51740 25870 25870 Selling and 46360 i 23180 i 23180 administrative Total fixed 98100 i 49050 49050 expenses Income (loss) from $ (26000) (49050) (23050) operations e Textbook and Media Attempts: 2 of 5 used (b2) V Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) Contribution margin $ (6,760) 0 6,760 Fixed costs Cost of goods sold 23,040 i 11,520 11,520 Selling and 25,200 i 12,600 i 12,600 administrative Total fixed 48,240 i 24,120 i 24,120 expenses Income (loss) from $ (55,000) $ (24,120) $ 30,880Prepare a columnar condensed income statement for Wildhorse 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.g. (45).) WILDHORSECOMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Divisions III IV Sales 69 $ $ LA 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 $ $ $ operationsStep by Step Solution
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