Questions Brialin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations Division 1 TE III IV $250,000 $198,000 $496,000 $443,000 205,000 189.000 297,000 255,000 70.000 63,000 61,000 54.000 5 (25.000) $ (54,000) $138,000 $134,000 Analysis reveals the following percentages of variable costs in each division TV 1 Cost of goods sold 69% Selling and administrative expenses 37 II 89% 51 III 30 51 58 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 CCROFINSON BADE 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 division (Enter negative amounts osing either a negative sin preceding the number 45 or parentheses (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions 1 III IV Total 250000 490000 443000 1113000 Variable costs Cost of goods sold 141450 237600 156200 567750 Selling and administrative 25900 31110 31320 3 Total variable costs 16730 200710 220020 656000 2650 227200 22290 531920 Contribution margin Fixed costs Cost of goods sold 107650 8920 285920 Selling and administrative 7560 7560 7500 22000 Total fixed costs 115210 95850 Questions Brialin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations Division 1 TE III IV $250,000 $198,000 $496,000 $443,000 205,000 189.000 297,000 255,000 70.000 63,000 61,000 54.000 5 (25.000) $ (54,000) $138,000 $134,000 Analysis reveals the following percentages of variable costs in each division TV 1 Cost of goods sold 69% Selling and administrative expenses 37 II 89% 51 III 30 51 58 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 CCROFINSON BADE 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 division (Enter negative amounts osing either a negative sin preceding the number 45 or parentheses (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions 1 III IV Total 250000 490000 443000 1113000 Variable costs Cost of goods sold 141450 237600 156200 567750 Selling and administrative 25900 31110 31320 3 Total variable costs 16730 200710 220020 656000 2650 227200 22290 531920 Contribution margin Fixed costs Cost of goods sold 107650 8920 285920 Selling and administrative 7560 7560 7500 22000 Total fixed costs 115210 95850