Brislin Company has four operating divisions. During the first quarter of $2020,$ the company reported aggregate income from operations of $$214,200$ and the following divisional results.

$\backslash$table$[[,$Division,$],[,$I,II$,$III,IV$,],[$Sales$,$$$254,000,$$$199,000,$$$501,000,$$$443,000,],[$Cost of goods sold,$204,000,189,000,301,000,247,000,],[$Selling and administrative expenses,$69,800,,60,000,57,000,55,000],[$Income $($loss$)$ from operations,$$(19,800),$$$(50,000),$$$143,000,$$$141,000,]]$

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

$\backslash$table$[[,1,,$II$,,$III,,IV$],[$Cost of goods sold,$67,\%,90,\%,82,\%,75],[$Selling and administrative expenses,$39,,62,,50,,58]]$

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 $($I and II$).$ Consensus is that one or both of the divisions should be discontinued.

$($a$)$

Your answer is correct.

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$.(45).)$

$($b$2)$

Prepare an incremental analysis concerning the possible discontinuance of Division II$.($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Net Income

Increase $($Decrease$)$

Contribution margin

Selling and goods sold

administrative

Income $($loss$)$ from

operations