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Pruulen Ad, VIUS, (Parc Level SUMISSIUNI viueu) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from
Pruulen Ad, VIUS, (Parc Level SUMISSIUNI viueu) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses $250,000 200,000 75,000 $ (25,000) Division II III $200,000 $500,000 192,000 300,000 60,000 60,000 $ (52,000) $140,000 IV $450,000 250,000 50,000 $150,000 Income (loss) from operations Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses I 70 % 40 II 90 % 60 III 80% 50 IV 75 % 60 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. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amo sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations Click if you would like to Show Work for this question: Open Show Work
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