Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income fromoperations of $216,400 and the following divisional results.DivisionIIIIVSales$250,000$199,000$499,000$443,000Cost of goods sold204,000189,000297,000246,000Selling and administrative expenses76,60054,00056,00052,000Income (loss) from operations$ (30,600) $ (44,000) $146,000$145,000Analysis reveals the following percentages of variable costs in each division.1IIIIVCost of goods sold71 %91 %81 %73 %Selling and administrative expenses37614958Discontinuance of any division would save 50% of the fixed costs and expenses for that division.Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should bediscontinued.(a)× Your answer is incorrect.Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding thenumber e.g. -45 or parentheses e.g. (45).)Contribution margineTextbook and MediaSave for LaterDivision IDivision II166300$-296320Attempts: 1 of 3 used Submit Answer

Contribution margin is determined by subtracting the variable costs from the sales of the company.…

Answered: Compute the contribution margin for…

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Compute the contribution margin for Divisions I and II. (Enter negati number e.g. -45 or parentheses e.g. (45).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $210,600 and the following divisional results. Division I II III IV Sales $245,000 $197,000 $504,000 $450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $ (27,400) $ (58,000) $145,000 $151,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 73 % 91 % 82 % 75 % Selling and administrative expenses 39 59 50 61 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 II). Consensus is that one or both of the divisions should be discontinued. Prepare a…
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $210,600 and the following divisional results. Division I II III IV Sales $245,000 $197,000 $504,000 $450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $ (27,400) $ (58,000) $145,000 $151,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 73 % 91 % 82 % 75 % Selling and administrative expenses 39 59 50 61 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 II). Consensus is that one or both of the divisions should be discontinued. Prepare an…
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