Brislin Company has four operating divisions. During the...
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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $208,400 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $245.000 203.000 74,600 $(32.600) Division 11 III $198.000 $501,000 189.000 297,000 60,000 62.000 $ 151.000) $142.000 IV $450,000 254,000 46,000 $150,000 Analysis reveals the following percentages of variable costs in each division, ! 66 x Cost of goods sold Selling and administrative expenses 11 88 58 78% 48 IV 73 57 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 (land 10. Consensus is that one or both of the divisions should be discontinued Continue Net Income Increase (Decrease) Eliminate Contribution margin $ 32600 $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ eTextbook and Media Save for later Attempts: 2 of 15 used Submit
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