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Grades: View xWileyPLUS brislin compamy has four oper . T e Chegg Study I Guided

ID: 2570286 • Letter: G

Question

Grades: View xWileyPLUS brislin compamy has four oper . T e Chegg Study I Guided Solutio! × Problem 26-4A (Part Level Su Casey × C Secure l https://edugen.wileyplus.com/edugen/lti/main.uni :: Apps Quiz 1 Business Communic C vll Papers Telec E .GENERAL INFO: C d How to Treat Cuban Cultural Information w cuba business com. Cuba Communicat. O The World Factbook. Kimmel, Accounting, 6e Help System Announcements Home Read, Study & Practice Gradebook ORION Downloadable eTextbook Assignment>Open Assignment CALCULATORPRINTER VERSION BACK NEDCT ASSIGNMENT RESOURCES (b1) 20 Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Exercise 20-9 (Part ubm Net Income Increase (Decrease) Continue Eliminate Contribution margin -90721 Fixed costs Exercise 20-18 Cost of goods sold 20-5A (Part evel Submission Selling and administrative Total fixed expenses Income (loss) from operation:s Review Review Results by St 90721 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Version 4.24.2.4

Explanation / Answer

Fixed cost for division 1:

Cost of sales :198000(1-.68)=63360

selling and administration expense :74700 (1-.37)= 47061

Division I should not be discontinued as it will result in increase loss of 35510

continue Eliminate Net Income increase/(decrease) contribution margin 90721 0 -90721 Fixed cost cost of goods sold -63360 -31680   [63360(1-.50 saved)] 31680 selling and adminsitrative expense -47061 -23530 [47061(1-.50)] 23531 Total fixed expense -110421 -55210 55211 Income/(loss)from operation -19700 -55210 -35510