Hele I System Announcements NEXT Problem 20-5A (Part Level Submission) Brislin C

Question

Hele I System Announcements NEXT Problem 20-5A (Part Level Submission) Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $218,700 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses69,300 Income (loss) from operations $253,000$195,000 $501,000 $447,000 97,000194,000296,000 250,000 61,00048,000 (13,300) (61,000) $144,000 $149,000 62,000 Analysis reveals the following percentages of variable costs in each division IV 89 % 79 % 76% Cost of goods sold Selling and administrative expenses 40 57 5259 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 I). Consensus is that one or both of the divisions 72 % should be discontinued 4:27 P 3/10/20 ^4x

Explanation / Answer

b-1

Net Income

Increase / (Decrease)

Division I Division II Sales 253000 195000 Variable cost Cost of goods sold 141840 172660 Selling and administrative 27720 35340 Total variable expense 169560 208000 Contribution margin 83440 -13000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.