Carla Vista Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from
operations of $204,400 and the following divisional results.
Division
III
IV
Sales
$253,000
$195,000 $504,000 $446,000
Cost of goods sold
199,000
192,000 300,000 248,000
Selling and administrative expenses
75,600
60,000
64,000
55,000
Income (loss) from operations
$ (21,600)
$ (57,000)
$140,000 $143,000
Analysis reveals the following percentages of variable costs in each division.
II
III
IV
Cost of goods sold
74 %
89%
78 %
73 %
Selling and administrative expenses
38
57
52
60