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Note to expert: This is the second attempt to post this question. The previous expert that attempted to answer simply copied and posted a previous
Note to expert: This is the second attempt to post this question. The previous expert that attempted to answer simply copied and posted a previous WRONG answer to the same question. It may appear that this question has already been solved within Chegg, but that is not the case. Therefore, I am requesting your expertise on this challenging question. Thanks
Blossom Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $232,400 and the following divisional results. Analysis reveals the following percentages of variable costs in each division. 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 I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Prepare 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).) 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).) (b3) What course of action do you recommend for each division? Division I Division II eTextbook and Media Attempts: 0 of 5 used 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 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 eg. (45).)Step by Step Solution
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