Cullumber Company has four operating divisions. During the first quarter of 2025, the company reported aggregate...
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Cullumber Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $188,400 and the following divisional results. Division | III IV Sales $246,000 $197,000 $503,000 $444,000 Cost of goods sold 205,000 195,000 305,000 250,000 Selling and administrative expenses 71,600 63,000 60,000 52,000 Income (loss) from operations $ (30,600) $ (61,000) $138,000 $142,000 Analysis reveals the following percentages of variable costs in each division. || ||| IV Cost of goods sold 74 % 88 % 78 % 76 % Selling and administrative expenses 37 61 50 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. (a) 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).) Contribution margin eTextbook and Media SA Division I 67808 A Division II (13030) Assistance Used Attempts: 2 of 2 used Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Contribution margin Fixed costs A Continue 67808 A Eliminate 0 Net Income Increase (Decrease) -67808 53300 i 26650 i 26650 45108 22554 i 22554 Cost of goods sold Selling and administrative Total fixed expenses 98408 Income (loss) from -30600 operations 49204 49204 -49204 -18604 Contribution margin Fixed costs Cost of goods sold Selling and A Continue -13030 23400 24570 +A Eliminate 11700 12285 A Net Income Increase (Decrease) administrative Total fixed 47970 23985 expenses Income (loss) from $ -61000 $ -23985 operations +A 13030 11700 12285 23985 37015 Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold $ AA $ CULLUMBERCOMPANY CVP Income Statement For the Quarter Ended March 31, 2025 Divisions = III IV $ $ +A Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations A $ $ Cullumber Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $188,400 and the following divisional results. Division | III IV Sales $246,000 $197,000 $503,000 $444,000 Cost of goods sold 205,000 195,000 305,000 250,000 Selling and administrative expenses 71,600 63,000 60,000 52,000 Income (loss) from operations $ (30,600) $ (61,000) $138,000 $142,000 Analysis reveals the following percentages of variable costs in each division. || ||| IV Cost of goods sold 74 % 88 % 78 % 76 % Selling and administrative expenses 37 61 50 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. (a) 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).) Contribution margin eTextbook and Media SA Division I 67808 A Division II (13030) Assistance Used Attempts: 2 of 2 used Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Contribution margin Fixed costs A Continue 67808 A Eliminate 0 Net Income Increase (Decrease) -67808 53300 i 26650 i 26650 45108 22554 i 22554 Cost of goods sold Selling and administrative Total fixed expenses 98408 Income (loss) from -30600 operations 49204 49204 -49204 -18604 Contribution margin Fixed costs Cost of goods sold Selling and A Continue -13030 23400 24570 +A Eliminate 11700 12285 A Net Income Increase (Decrease) administrative Total fixed 47970 23985 expenses Income (loss) from $ -61000 $ -23985 operations +A 13030 11700 12285 23985 37015 Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold $ AA $ CULLUMBERCOMPANY CVP Income Statement For the Quarter Ended March 31, 2025 Divisions = III IV $ $ +A Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations A $ $
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Cullumber Company Divisional Analysis Q1 2025 This report analyzes Cullumber Companys divisional performance for the first quarter of 2025 based on th... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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