(62) Prepare an incremental analysis concerning the possible discontinuance of Division II (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses e.3.(45) Continue Net Income Increase (Decrease) Eliminate Contribution margin $ $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income foss) from operations $ $ e Textbook and Media Sove for later Attempts: 0 of 5 used Submit Answer (63) Current Attempt in Progress Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $212,000 and the following divisional results. Division 11 111 IV Sales $240,000 $195,000 $498,000 $452.000 Cost of goods sold 198,000 192,000 304,000 247,000 77,000 54,000 56,000 51.000 Selling and administrative expenses Income (loss) from operations to $(29,000) $(51000) $138,000 $154.000 Analysis reveals the following percentages of variable costs in each division 1 II 111 IV Cost of goods sold 73% 92% 77 56 79 % Selling and administrative expenses 41 60 48 62 Discontinuance of any division would save 50% of the fixed costs and expenses for that division Top management is very concerned about the unprofitable divisions (I and 11). Consensus is that one or both of the divisions should be discontinued