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Grades: View xWileyPLUS · brislin compamy has four oper x\" e Chegg Study l Guid

ID: 2570311 • Letter: G

Question

Grades: View xWileyPLUS · brislin compamy has four oper x" e Chegg Study l 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 RESOURCESBrislin Company has four operating divisons.Ding the first quarter of 2017, the company reported aggregate income from operations of $200,300 and the following divisional results. 20 Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $253,000 $198,000 $495,000 $447,000 190,000 303,000 254,000 52,000 $(19,700) (57,000) $136,000 141,000 Exercise 20-9 (Part ubm 198,000 74,700 65,000 56,000 Analysis reveals the following percentages of variable costs in each division. IV Exercise 20-18 Cost of goods sold Selling and administrative expenses 37 6049 61 Discontinuance or 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. 68 % 90% 79 % 75% evel Submission Review Review Results by St (a) Your answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Division I Division II Contribution margin 90721 12000 Version 4.24.2.4

Explanation / Answer

continue Eliminate Net income increase (decrease) Contribution margin -12,000 -12,000 fixed costs cost of goods sold 19000 9500 9,500 selling and administration 26000 13000 13,000 total fixed expenses 45000 22500 22,500 income(loss)from operations -57000 -22,500 -34500 contribution sales 198000 variable cost of goods sold (190000*90%) -171000 variable selling & adm (65000*60%) -39000 contribution -12000