Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $218,700 and the following divisional results.

Division
I	II	III	IV
Sales	$250,000	$198,000	$499,000	$447,000
Cost of goods sold	195,000	194,000	298,000	250,000
Selling and administrative expenses	70,300	62,000	57,000	49,000
Income (loss) from operations	$ (15,300)	$ (58,000)	$144,000	$148,000

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

I	II	III	IV
Cost of goods sold	74	%	92	%	78	%	73	%
Selling and administrative expenses	37	57	51	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.

(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).)

Division I	Division II
Contribution margin	$	$

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(b1)

	Your answer is partially correct. Try again.

Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts 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
Selling and administrative
Total fixed expenses
Income (loss) from operations	$	$	$