Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $215,000 and the following divisional results.

		Division
		I		II		III		IV
Sales		$249,000		$200,000		$504,000		$450,000
Cost of goods sold		199,000		191,000		296,000		249,000
Selling and administrative expenses		76,000		63,000		64,000		50,000
Income (loss) from operations		$ (26,000)		$ (54,000)		$144,000		$151,000

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

		I			II			III			IV
Cost of goods sold		74	%		88	%		79	%		74	%
Selling and administrative expenses		39			60			51			61

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.

Prepare an incremental analysis concerning the possible discontinuance of Division I.

Prepare an incremental analysis concerning the possible discontinuance of Division II.

Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division IIs unavoidable fixed costs are allocated equally to the continuing divisions.