Ayayai Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $230,500 and the following divisional results. Division | II III IV Sales $245,000 $195,000 $495,000 $443,000 Cost of goods sold 195,000 190,000 295,000 245,000 Selling and administrative expenses 67,500 55,000 55,000 45,000 Income (loss) from operations $(17,500) $ (50,000) $145,000 $153,000 Analysis reveals the following percentages of variable costs in each division. II III IV Cost of goods sold 66 % 87 % 77 % 73 % Selling and administrative expenses 37 57 47 57 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 II). Consensus is that one or both of the divisions should be discontinued. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Division 1 Division II Contribution margin $ $ e Textbook and Media Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g.(45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ e Textbook and Media Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin $ $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ $ e Textbook and Media What course of action do you recommend for each division? Division 1 Division 11 e Textbook and Media III IV Sales $ LA $ Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations $ $ $ IV Total $ $ $ $