Question

Please help me figure out the red columns. I hope the pictures help to solve

Prepare a columnar condensed income statement for Indigo Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) INDIGO COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 A Divisions III Total Sales 250000 499000 447000 1196000 Variable costs Cost of goods sold 144300 232440 182500 559240 Selling and administrative 26011 290701 28910 83991 Total variable costs 170311 261510 211410 643231 Contribution margin 79689 237490 235590 552769 Fixed costs Cost of goods sold 50700 65560 67500 183760 Selling and administrative 44289 27930 235590 92309
Prepare a columnar condensed income statement for Indigo Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) INDIGO COMPANY CVP Income Statement Entry field with correct answer Divisions I III IV Total Sales $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Variable costs Cost of goods sold Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Selling and administrative Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Total variable costs Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Contribution margin Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Fixed costs Cost of goods sold Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Selling and administrative Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Total fixed costs Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Income (loss) from operations $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer

Answer 1

Answer is given below with all working

$250,000 $144,300 $26,011 $170,311 $79,689 Division III $499,000 $232,440 $29,070 $261,510 $237,490 IV $447,000 $182,500 $28,910 $211,410 $235,590 Total $1,196,000 $559,240 $83,991 $643,231 $552,769 Sales Cost of Goods sold Selling and administrative expenses Total Variable Cost Contribution Margin Fixed Costs COGS Selling and administrative expenses Total Fixed Cost Net Operating Income $53,287 $48,732 $102,019 -$22,330 $68,147 $32,373 $100,520 $136,970 $70,087 $24,533 $94,620 $140,970 $191,520 $105,639 $297,159 $255,610 Division B S&A $62,000 Cost 57% Variable % Variable cost Fixed cost Unavoidable cost 50% COGS $194,000 92% $178,480 $15,520 $7,760 $35,340 $26,660 $13,330 Unavoidable cost is equally allocated to all Division Division Cost of Goods sold Selling and administrative expenses $195,000 $70,300 $298,000 $57,000 $250,000 $49,000 78% Variable cost % COGS Variable cost % S&A 74% 37% 73% 59% 51% 26% 2007 27% Fixed cost % COGS Fixed cost % S&A 41% Fixed Cost- COGS COGS Fixed Cost COGS - Division B Total Fixed COGS $50,700 $2,587 $53,287 $65,560 $2,587 $68,147 $67,500 $2,587 $70,087 Fixed Cost-S&A COGS Fixed Cost S&A - Division B Total Fixed Selling and administrative expense $44,289 $4,443 $48,732 $27,930 $4,443 $32,373 $20,090 $4,443 $24,533