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View History BookmarksPeople Window Help 16%D Mon 9:39 PM Brian Bentley × . M inbox (1 )-bb2 x myGeneseo: H × Conversations × WileyPLUS Brisi n Compex e Gutierrez Corn x G Bris n Compe K tps://edugen.wileyplus.com/edugen/iti/main.uni Weygandt, Managerial Accounting, 8e Hele I System Announcements CALCULATOR PRINTER VERSION BACK Problem 7-5A a, b1-b3, c (Part Level Submission) (Video) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207,800 and the following divisional results Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations (22,200) (54,000) $136,000 $247,000 $198,000 $497,000 $449,000 195,000 195,000 301,000 247,000 74,200 57,000 60,000 54,000 $148,000 Analysis reveals the following percentages of variable costs in each division. 77% 52 76 % 58 73% 90 % Cost of goods sold Selling and administrative expenses 40 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 (1 and II). Consensus is that one or both of (a) Your answer is correct. preceding the number e.g.-45 or parentheses e Compute the contribution margin for Divisions I and I. (Enter negative amounts using either a negative sign

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DIVISION1 DIVISION2 DIVISION3 DIVISION4 Sales 247000 198000 497000 449000 Variable cost Cost of goods sold 142350 175500 231770 187720 Selling and admin expense 29680 32490 31200 31320 Total variable cost 172030 207990 262970 219040 Contribution margin 74970 -9990 234030 229960 Fixed Cost Cost of Goods sold 52650 19500 69230 59280 Selling and Admin expense 44520 24510 28800 22680 Total Fixed cost 97170 44010 98030 81960 Net Income/(Loss) from operations -22200 -54000 136000 148000 Note: Fixed cost of goods sold= Total Cost of goods sold- Variable COGS Note: Fixed Sselling and Admin expense = Total expense-Variable expense

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