Bonita Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $204,000 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250.000 198.000 75.000 $(23,000) Division II HIL $198.000 $499,000 192,000 298,000 63,000 63,000 $(57.000) $138.000 M $446,000 254,000 46,000 $146,000 Analysis reveals the following percentages of variable costs in each division. TII IV 11 90 % 74 % Cost of goods sold Selling and administrative expenses 69 % 41 80 % 52 62 58 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 (and 11). 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 eg.-45 or parentheses e8-(451) Division Division 11 Contribution margin Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the numberes.-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 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...(45) Continue Net Income Increase (Decrease) Eliminate Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ What course of action do you recommend for each division? Division Division 11 Prepare a columnar condensed income statement for Bonita Company, assuming Division is eliminated. Division Il's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es. (45)0) BONITA COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions III TV Sales $ $ Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs 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 $ $ $