1.2

Crane Maracturing Company has fourting During the returer 2010 Income from operations of $15.00 and the following viral $298.000 $177.00 3509.500 287.500 Cost of goods sold Selling and administrative expenses Income on from operatione $35.100 270.100 67.000 5033.300 246.300 78.400 $71.300 51300 151,800 74.100 5162.700 548.500 The analysis reveals the following percentages of variable costs in each dinion # IV 111 75% 71 88N 91% Cost of goods Sellers and administrative expenses 39 50 65 70 Discontinuance of any division would save 50% of the feed costs and expemes for the division Top management is very concerned about the unprofitable division and IV. The comes is that the company should continue one or both of these divisions Prepare an incremental analysis for the possible discontinuance of (1) division Illand (2) division IV. Round answers to decimal places, es. 125. Enter all negative amounts using either a negative sign preceding the number es. 45 or parentheseses (451. While alternate approaches are possible, e, irrelevant fixed costs should be included in both options when solving this problem) (1) Division 11 Income Increase (Decrease) Division II: Keep Div. III Shut Div. Ili Contribution margin $ Fixed costs 1 $ Totals (2) Division IV Income