1. c)

Sheridan Manufacturing Company has four operating divisions During the first quarter of 2022, the company reported aggregate Income trom operations of $154,900 and the following divisional results Division IV Sales 11 $399.000 $30.900 5178.800 $505 800 284,000 272.600 155.400 Cost of poods sold Selling and nitrative contes income outrom operations 246.500 73.800 61.500 89.000 74,800 $160.300 576.700 $132.7001 $59.4000 The analysis reveals the following percentages of variable costs in each division 1 11 IV 724 Contopods sold Selling and reports 74% 92% 49 05 70 Discontinuance of any division would save 50of the feed costs and expenses for that division Too management is very concerned about the profitable division and I The consent is that the company should discontinue one or both of these di (2) Division IV Income Increase (Decrease) Division IV: Keep Div. IV Shut Div. IV Contribution margin $ Fixed costs Totals $ What course of action do you recommend for each division? MacBook Air so 888