1. b)

Sheridan Manufacturing Compaw las four operating divisions. During the first quarter of 2022, the company reported treate income from operations of $154.900 and the following divisional results Division Ini IV Sales $505.000 $308,900 $178.800 $399.000 246 500 234.000 272.600 155.400 Cost of goods sold Seling and adminstrative expenses incomes from operations 61500 73.800 69.000 74,800 $160,300 $78.700 $132.7002 5451400) The lysis reveals the following percentages of variable costs intach division 1 11 IV 72% 38% 74 92 Coutefoods sold Selling indenitrative opere 42 49 65 20 Distance of any divisions would saw 50% of the costs and spees for that division Top is wry concerned about the profitable division II and IV. The comments is that the company should disconti one or both of the divisions MacBook Air Prepare an incremental analysis for the possible discontinuance of (1) division Illand (2) division IV. (Round answers to decimal ploos, eg. 125. Enter all negative amounts using either a negative sign preceding the numberes.-45 or parentheses es. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem (1) Division Division il Income Increase (Decrease) Keep Div.in Shut Div. It Contribution margin Fored costs Totals 12) Division IV Income MacBook Air