Answer Happy

Brislin Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $213,000 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations Cost of goods sold Selling and administrative expenses 11 $200,000 $500,000 $450,000 192,000 300,000 250,000 60,000 50,000 75,000 60,000 $(25,000) $(52,000) $140,000 $250,000 200,000 Analysis reveals the following percentages of variable costs in each division. 1 70 % 40 11 Division 90 % 60 ||| 80 % 50 IV 75 % 60 IV $150,000
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) Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Contribution margin Division I Division II