Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $194,000 and the following divisional results. Division 11 III IV Sales $251,000 $195,000 $502,000 $446,000 Cost of goods sold 205,000 189.000 302,000 251,000 Selling and administrative expenses 76,000 63,000 60,000 54,000 Income (loss) from operations $ (30,000) $(57,000) $140,000 $141,000 Analysis reveals the following percentages of variable costs in each division 1 11 IV 68 % 90 % 79 % R Cost of goods sold Selling and administrative expenses 73 % 39 57 49 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 II). Consensus is that one or both of the divisions should be discontinued. Your answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e... (45).) Division 1 Division 11 Contribution margin 81960 (11010) e Textbook and Media Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division 1 (Enter negative amounts using either a negative sign preceding the number est. -45 or parentheses (4511 Continue Eliminate Net Income Increase (Decrease) Contribution margin 81960 $ 0 (81960) Fixed costs Cost of goods sold (65600) (32800) i 32800 Selling and administrative (46360) i (23180) i 23180 Total fixed expenses (111960) i (55980) 55980 Income (loss) from operations $ (30000) $ (55980) (25980) eTextbook and Media 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 eg. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin (11010) 11010 Fixed costs Cost of goods sold (18900) (9450) 9450 Selling and administrative (27090) i (13545) 13545 Total fixed expenses (45990) (22995) 22995 Income (loss) from operations $ (57000) $ (22995) $ 34005 BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions HII IV Sales $ 251000 $ 502000 446000 $ Variable costs Cost of goods sold 139400 i 238580 183230 . Selling and administrative 29640 29400 i 33480 Total variable costs 169040 267980 216710 Contribution margin 81960 234020 229290 Fixed costs BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions IV Total $ 502000 $ $ 446000 $ $ 1199000 238580 183230 i 561210 i 29400 i 33480 92520 i 267980 i 216710 i 653730 234020 229290 545270 Cost of goods sold 97100 94920 99270 Selling and administrative 56860 41100 31020 Total fixed costs 153960 136020 130290 Income (loss) from operations $ (72000) $ 98000 99000 94920 99270 291290 41100 31020 128980 136020 130290 420270 A 98000 $ 99000 $ 125000