Problem 20-SA Brisin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $227,500 and the following divisional results. Division Sales $248,000 $198,000 $505,000 $450,000 Cost of goods sold 197,000 191,000 301,000 249,000 Selling and administrative expenses 72,500 57,000 59,000 47,000 Income (los) from operations (21,500) $(50,000) $145,000 $154,000 Analysis reveals the following percentages of variable costs in each division Cost of goods sold Selling and administrative expenses I 71% 41 II 87% 62 III 81% 52 IV 77% 59 Discontinuance of any division would save 50% of the foxed 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 incorrect. Try again. negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Compute the contribution margin for Divisions I and II. (Enter negative amounts using Division 1 Division II Contribution margin Your answer is partially correct. Try again a negative slan Prepare an incremental analysis concerning the possible discontinuance of Division 1 preceding the number e.g.-45 or parentheses .g. (45).) Contribution margin Faced costs Cost of goods sold Selling and administrative Income (loss) from operations CALCULATOR STANDARD VIEW PRINTER VERSION BACK Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to er to preceding the number e.g.-45 or parentheses g. (45)) decimal places, e ng either a negative sign Net Income Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations Your answer is incorrect. Try again. What course of action do you recommend for each division? Division 1 Division II x Your answer is incorrect. Try again. Prepare a columnar condensed Income statement for Brislin Company, assuming Division II is eliminated. Division It's unavoidable fixed costs are allocated equally to the continuing divisions. (Round answers to decimal places, .g. 1525. Enter negative amounts using either a negative sign preceding the numberg.-5 or parentheses e.. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Foxed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations