CALCULATOR PRINTER VERSION BACK 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 $227,500 and the following divisional results Division IV $248,000 $198,000 $505,000 $450,000 197,000191,000301,000249,000 Sales Cost of goods sold Selling and administrative expenses 72,500 57,000 59,000 47,000 Income (loss) from operations $145,000 $154,000 (21,500) (50,000) Analysis reveals the following percentages of variable costs in each division. IV Cost of goods sold Selling and administrative expenses 7 % 87% 8 % 77% 41 62 52 59 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