Last Part Please Problem 20-5A (Part Level Submission) Brislin Company has four
ID: 2518378 • Letter: L
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Last Part Please
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 $212,300 and the following divisional results. Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $247,000 $198,000 $499,000 $448,000 203,000 193,000 295,000 250,000 48,000 $150,000 69,700 $(25,700) 56,000 $(51,000) 65,000 $139,000 Analysis reveals the following percentages of variable costs in each division. ??? IV Cost of goods sold 71 % 88 % 81% 76 % Selling and administrative expenses 38 59 50 60 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 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 IDiv Division II Contribution margirn LINK TO TEXT ? (b1) Your answer is correct.Explanation / Answer
I III IV Total Sales 247000 499000 448000 1194000 Variable Cost Cost of Goods Sold 144130 238950 190000 573080 Selling and Admin Expense 26486 32500 28800 87786 Total Variable Cost 170616 271450 218800 660866 Contribution Margin 76384 227550 229200 533134 Fixed Cost Cost of Goods Sold 62,730 59,910 63,860 186500 Selling and Admin Expense 47,041 36,327 23,027 106394 Total Fixed Cost 109,771 96,237 86,887 292894 Income from Operation -33,387 131,313 142,313 240240
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