(Solved):Gutierrez Company has four operating divisions. During the first quarter of 2014, the company…

 

Question

Gutierrez Company has four operating divisions. During the first quarter of 2014, the company reported aggregate income from operations of $212,500 and the following divisional results.

Division I Division II Division III Division IV
Sales $251,500 $197,400 $496,600 $445,800
Cost of goods sold 201,600 193,300 296,600 249,400
Selling and administrative expenses 70,400 58,400 59,300 49,800
Income (loss) from operations $(20,500) $(54,300) $140,700 $146,600

Analysis reveals the following percentages of variable costs in each division

I II III IV
Cost of goods sold

Scroll to top