Carla Vista Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $182,700 and the following divisional results: Division IV Sales $509,500 $418,600 $313,300 $179,300 Cost of goods sold 289,700 249,000 266,600 154,800 Selling and administrative expenses 60.100 75,400 67,400 75,000 Income (loss) from operations $159,700 $94,200 $(20,700). $(50,500) The analysis reveals the following percentages of variable costs in each division: I 11 III IV Cost of goods sold 70% 89% 74% 92% Selling and administrative expenses 38 48 65 70 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 (III and IV). The consensus is that the company should discontinue Search (b) Your answer has been saved. See score details after the due date. Calculate the contribution margin for divisions III and IV. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Divisions III Contribution margin $ 72206 Divisions IV -15616 Attempts: 1 of 1 used Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to O decimal places, eg. 125. Enter all negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) (1) Division III Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to O decimal places, eg. 125. Enter all negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) (1) Division III Division III: Contribution margin Fixed costs Totals (2) Division IV Income Keep Div. III Shut Div. III Increase (Decrease) $ Division IV: Keep Div. IV Shut Div. IV Contribution margin Income Increase (Decrease) (2) Division IV Income Increase Division IV: Keep Div. IV Shut Div. IV (Decrease) Contribution margin $ Fixed costs Totals What course of action do you recommend for each division? Division III should be Division IV should be Save for Later $ Attempts: 0 of 1 used Submit