70.2K

Verified Solution

Link Copied!

Oriole Company has four operating divisions. During the first quarter of 2022 , the company reported aggregate income from operations of $232,200 and the following divisional results. Analysis reveals the following percentages of variable costs in each division. 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. 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).) Prepare an incremental analyzis concerning the poss'ble discontinuance of Divisi on t. FEnter negative amounts using either a negstive simp preceding the number eg.45 or porentheses e. (451) eTextbookand Media Prepare an incrementai analysis concerning the possible discontinuance of Dlvision lit. IEnter negative amounts using elther a negotive sign preceding the number es. 45 or parentheses e.s. (451) What course of action do you recommend for each division? Division eTextbook and Media Prepare a columnar condensed income statement for Brisin Company abs aming Division ill is eliminated Division irs w fowd costs are aliocated equaly to the continuing divisions. (E)ter neptive ancunts uning either a negstive sign preceding: es. 45 or parentheseses (45.) Drepare a columnar condensed income statement for Brialin Company, assuming Division Il is eliminated. Division its unavoidable foced costs are allocated equally to the continuing divisions. Enter negstive emounts using either a negutive sign preceding the number e. 45 or parentheses eg (45) Prepare a columnar condensed income statement for Brislin Company, assuming Division it is eliminated. Divis on Ifs unaveicable ftxed costs are aliocated equally to the continuing divisions. (Enter negotive amounts using either a negutive sign pitcteding the number e. 45 or parentheses eg (45)

Answer & Explanation Solved by verified expert

See Answer