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Blossom Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $214,200 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations Your answer is incorrect I $254,000 204,000 69,900 $(19,800) $(50,000) $143,000 I Contribution margin S Division || Analysis reveals the following percentages of variable costs in each division. eTextbook and Media Cost of goods sold 90 96 Selling and administrative expenses 39 62 50 $199,000 189,000 301.000 57,000 60,000 Division $501.000 $443,000 247,000 55.000 $141.000 IV 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 (and I). Consensus is that one or both of the divisions should be discontinued. 75 9 58 Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg -45 or parenthesese.g. (45)) IV Division II 37,200 Assistance Used

Blossom Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $214,200 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations Your answer is incorrect I $254,000 204,000 69,900 $(19,800) $(50,000) $143,000 I Contribution margin S Division || Analysis reveals the following percentages of variable costs in each division. eTextbook and Media Cost of goods sold 90 96 Selling and administrative expenses 39 62 50 $199,000 189,000 301.000 57,000 60,000 Division $501.000 $443,000 247,000 55.000 $141.000 IV 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 (and I). Consensus is that one or both of the divisions should be discontinued. 75 9 58 Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg -45 or parenthesese.g. (45)) IV Division II 37,200 Assistance Used

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Blossom Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $214,200 and the following divisional results. Sales Cast of goods sold Selling and administrative expenses Income (loss) from operations (a) * Your answer is incorrect. Analysis reveals the following percentages of variable costs in each division. Cast of goods sold Selling and administrative expenses 39 Contribution margin $ eTextbook and Media (61) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed II IV $199,000 $501,000 $443,000 189,000 301,000 247,000 60,000 57,000 55,000 69,900 $(19,800) $(50,000) $143,000 $254,000 expenses 204,000 Income (loss) from operations 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. S I S 67 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)) 90 96 Division Division 62 Continue III 27,222 III 50 IV 75 96 58 Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) $141,000 Division II Eliminate 37,200 Assistance Used S Attempts: 2 of 2 used Net Income Increase (Decrease)
Transcribed Image Text:Blossom Company has four operating divisions. During the first quarter of 2025, the company reported aggregate income from operations of $214,200 and the following divisional results. Sales Cast of goods sold Selling and administrative expenses Income (loss) from operations (a) * Your answer is incorrect. Analysis reveals the following percentages of variable costs in each division. Cast of goods sold Selling and administrative expenses 39 Contribution margin $ eTextbook and Media (61) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed II IV $199,000 $501,000 $443,000 189,000 301,000 247,000 60,000 57,000 55,000 69,900 $(19,800) $(50,000) $143,000 $254,000 expenses 204,000 Income (loss) from operations 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. S I S 67 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)) 90 96 Division Division 62 Continue III 27,222 III 50 IV 75 96 58 Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) $141,000 Division II Eliminate 37,200 Assistance Used S Attempts: 2 of 2 used Net Income Increase (Decrease)
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