Current Attempt in ProgressCrane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income fromoperations of $ 210,600 and the following divisional results.DivisionIVSales$ 245,000$ 197,000$ 504.000$450,000Cost of goods sold200,000192,000301.000249,000Selling and administrative expenses72,40063,00058,00050,000Income (loss) from operations$( 27,400)$( 58,000)$ 145,000$ 151,000Analysis reveals the following percentages of variable costs in each division.一IIIIIV73 %91 %82 %75 %Cost of goods sold3959.5061Selling and administrative expensesDiscontinuance 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 bediscontinued. Your answer is correct.Prepare an incamental analysis concerning thepossibie discontinuance of Division LEnter negotnegative sign preceding the numbereg 45 or parentheses es (45))susing either aNet IncomeContinueEliminatehcrease DeceaseWoonquoucomargin5-ס2-70754Foed costsCost of goods soic54,0002700027000Selling andadininistrativE44,254120E2Total foed98,154Expenses50E2Income (css iomin-27,400operations-21682eTexbook and MediaAttenpts 2 c5used(2)Frepare an incremental analysis concerning the possible discontinuance.of DrvSonLntive sign preczding the number e 45 ar parentheseseg (45)Net IncomeContinueEliminatehcease (DecesainContributionmarginFored costsCast of goods soicSelling and25,83012.91512.915adiministrativeTotal fued expensesIncome (loss) firomaperationsAssistance UsedeTextbook and Media10:56 AM

Here in this question, we are required to calculate incremental profit/loss. This type of analysis…

Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 210,600 and the following divisional results. Division 3. II IV Sales $ 245,000 $ 197,000 $ 504,000 $ 450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $(27,400) $(58,000) $145,000 $ 151,000 Analysis reveals the following percentages of variable costs in each division. III IV 73 % 91 % 82 % 75 % Cost of goods sold 39 59, 50 61 Selling and administrative expenses 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.

Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 210,600 and the following divisional results. Division 3. II IV Sales $ 245,000 $ 197,000 $ 504,000 $ 450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $(27,400) $(58,000) $145,000 $ 151,000 Analysis reveals the following percentages of variable costs in each division. III IV 73 % 91 % 82 % 75 % Cost of goods sold 39 59, 50 61 Selling and administrative expenses 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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 3RE: Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues...

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