Problem 12-5 Total fixed expenses 019.279 Income (loss) from operations 1-46,000 -19,275 Your answer is correct. What course of action do you recommend for each division? Division 1 Division 11 Continued Eliminated Your answer is partially correct. Try again. Prepare a columnar condensed income statement for Sarasota Company, assuming Division Illis eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. then enter the amount using either a negative sign preceding the number -45 or parentheses g. (45).) SARASOTA COMPANY CVP Income Statement or the Quarter Ended March 31, 2017 Divisions $250,000 1499,000 M43,000 192.000 Sales Variable costs Cost of goods sold Selling and administrative Total variable costs 144,840 240,70 1266,010 1650.932 $41,068 230,990 Contribution margin Fixed costs Cost of goods sold 190,560 1109,383 Selling and administrative H 99,943 Total fixed costs 241.125 Income (loss) from operations Proble 125 Compute the contribution margin for Divisions I and II. (Enter negative amounts using other a negative sign preceding the number ... -15 or parentheses Division 1 Division II Contribution margin $26.818 17.450) (45) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Round answers to sign preceding the number e.g.-45 or parentheses ... (45).) decimal places, .g. 1525. If amount decreases net income Continue Eliminate Net Income Increase (Decrease) $76,816 176,818) 159,160 SRC 29.580 Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations 24,129 1107,418 183,709 $30,600 SF-23,109 Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Divison II(Round answe sign preceding the number e.g. -45 or parenthesese.g. (45).) cimal places g. 1525. If amount decreases net income the Net Income Increase (Decrease) Continue Eliminate Contribution margin 47.100 1.550 550 Fixed costs Cost of goods sold Selling and administrative Total fixed expenses 21.450 110,729 38,550 119,275 19,275 Income (loss) from operations 146,000 Your answer is correct. What course of action do you recommend for each division? Division 1 Division 11 Eliminated Your answer is partially correct. Try again. Prepare a columnar condensed income statement for Sarasota Company, assuming Division It is eliminated. Division II unavoidable fred costs are allocated equally to the continuin in either a negative sign preceding the number .. 45 or parentheses 9. (45):) ALL240 FA19 EMWF155A / Topic 7 Assignment (FA19) *Problem 12-5 Sarasota Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $214,400 and the following divisional results Division III Sales $250,000 $199,000 $499,000 $443,000 Cost of goods sold 204,000 190,000 297,000 246,000 Selling and administrative expenses 76,600 55,000 56,000 $2,000 Income (loss) from operations $ (30,600) $ (46,000) $146,000 $145,000 Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses I 71 % 37 II 91% 61 III 81% 4 9 5 8 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. Your answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sin preceding the number .. 45 or parentheses g. (45).) Division 1 Division II Contribution margin $26,818 317,450) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to sign preceding the number e.g. -45 or parentheses eg. (45).) decimal place, .g. 1525. Il amount decreases net income Continue Eliminate Net Income Increase (Decrease) 576,818) Contribution margin $26,818 Fixed costs Cost of goods sold Selling and administrative 59,160 129,560 929,50 MacBook Air