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Question 5 of 5 - / 10 Sandhill Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from
Question 5 of 5 - / 10 Sandhill Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $216,600 and the following divisional results. Division 1 II III Sales IV $ 253,000 $ 195,000 $ 501,000 Cost of goods sold $ 447,000 197,000 195,000 296,000 250,000 Selling and administrative expenses 69,400 63,000 61,000 48,000 Income (loss) from operations $(13,400) $(63,000) $ 144,000 $ 149,000 Analysis reveals the following percentages of variable costs in each division. II IV Cost of goods sold 72 % 89 % 79 % 76 % Selling and administrative expenses 40 57 52 59 Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Question 5 of 5 Discontinuance of any division would save 50% of the fixed costs and expenses for that division. - / 10 5 Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. (a) Compute the contribution margin for Divisions land II. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Division 1 Division 11 Contribution margin $ $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (11)
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