Question: Please do part (b2) Problem 20-5A (Part Level Submission) Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate
Please do part (b2)


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 $231,300 and the following divisonal results. Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $253,000 195,000 $502,000 $449,000 197,000 190,000 295,000 246,000 57,000 60,000 47,000 (19,700) (52,000) $7,000 $156,000 75,700 Analysis reveals the following percentages of variable costs in cach division IV Cost of goods solkd Selling and administrative expenses 37 62 48 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 I). Consensus is that one or both of the divisions should be discontinued. 67 96 89 % 81% 73% 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 I Division I Contribution margin Sp3001) 440 Attempts: (b1) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 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 mergin $93001 s93001 Fixed costs Cost of goods sold 2505 23845.5 56351 Selling and administrative 47691 Total fixed expenses Incorme (loss) from operations 19700) 56351 36650
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