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please answer this one Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $208,400
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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $208,400 and the following divisional results. Division I II III IV Sales $245,000 $198,000 $501,000 $450,000 Cost of goods sold 203,000 189,000 297,000 254,000 Selling and administrative expenses 74,600 60,000 62,000 46,000 Income (less) from operations $(32,600) $ (51,000) $142,000 $150,000 Analysis reveals the following percentages of variable costs in each division. 11 III IV Cost of goods sold 66% 88% 78% 73% Selling and administrative expenses 40 58 48 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 (62) Your answer is partially correct. Try again. 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 -3120 3120 Fixed costs Cost of goods sold 22,800 11,400 11,400 Selling and administrative 25,200 12,600 12,600 Total fixed expenses 48,000 24,000 24,000 Income (loss) from operations -51,120 -24,000 27,120 Click if you would like to Show Work for this question: Open Show Work Step by Step Solution
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