Bridgeport Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $227,500 and the following divisional results.

		Division
		I		II		III		IV
Sales		$248,000		$198,000		$505,000		$450,000
Cost of goods sold		197,000		191,000		301,000		249,000
Selling and administrative expenses		72,500		57,000		59,000		47,000
Income (loss) from operations		$ (21,500)		$ (50,000)		$145,000		$154,000

Analysis reveals the following percentages of variable costs in each division.

		I			II			III			IV
Cost of goods sold		71	%		87	%		81	%		77	%
Selling and administrative expenses		41			62			52			59

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 I Division II Contribution margin LINK TO TEXT 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).) Continue Eliminate Net Income Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Seng and administrative Total fixed expenses Income (loss) from operations LINK TO TEXT Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to O 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).) Continue Eliminate Net Income Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Seng and administrative Total foxed expenses Income (loss) from operations LINK TO TEXT What course of action do you recommend for each division? Division 1 Division 11 LINK TO TEXT Prepare a columnar condensed income statement for Bridgeport Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. 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).) BRIDGEPORT COMPANY CVP Income Statement Divisions Sales Variable costs Cost of goods sold Seling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Seng and administrative Total fixed costs Income (loss) from operations LINK TO TEXT