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.3. (45).) Division 1 Division 11 Contribution margin $ Vaughn Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $207.400 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $249,000 205,000 71,600 $(27,600) Division II III $200,000 $498,000 192,000 305,000 60,000 59.000 $(52.000) $134,000 IV $446,000 248,000 45,000 $153.000 Analysis reveals the following percentages of variable costs in each division 1 II IV 68 % 74 % Cost of goods sold Selling and administrative expenses 88 % 59 81 % 47 40 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. Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Round answers to o decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Net Income Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Totalfixed expenses Income (loss) from operations Your answer is correct. What course of action do you recommend for each division? Division 1 Prepare a columnar condensed incorne statement for Brislin Company, assuming Division 1 is eliminated. Division It's unavoidable fixed costs are allocated equally to the continuing divisions, (Round answers to decimal places, e.g. 1525 Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e. 145).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions II IV Total Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold 54000 Selling and administrative 44164 Total fixed costs 98164 Income Docs from operations -27400 154180 62250 170430 129000 19500 92664 193180 |81750 1263094 545000 151000 268600