Carla Vista Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $187,000 and the following divisional results: Division TO IV Sales $521,900 $399,800 $307,200 $177,800 Cost of goods sold 286,000 243,100 269,000 151,800 Selling and administrative expenses 62,600 75,000 61,200 71.000 Income (loss) from operations $173,300 $81,700 $(23,000) $(45,000) The analysis reveals the following percentages of variable costs in each division: III IV Cost of goods sold 68% 88% 75% 91% Selling and administrative expenses 40 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 one or both of these divisions. Calculate the contribution margin for divisions III and IV. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Divisions III Divisions IV Contribution margin $ Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to 0 decimal places, eg. 125. Enter all negative amounts using either a negative sign preceding the number e.g.-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 Income Increase (Decrease) Division III: Keep Div. III Shut Div. III Contribution margin Fixed costs Totals (2) Division IV Income Increase (Decrease) UN Division IV: Keep Div. IV Shut Div. IV Contribution margin EA $ TA $ ta $ Fixed costs Totals $ $ TA $ What course of action do you recommend for each division? Division III should be Division IV should be Prepare a condensed income statement in columns for Carla Vista Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number eg.-45 or parentheses eg. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) CARLA VISTAMANUFACTURING COMPANY CVP Income Statement Div 1 Div II Div III $ ta $ $ $ ta $ $ Reconcile the total income from operations of $187,000 with the total income from operations without division IV. Income from operations with Division IV ta $ Incremental income from eliminating Division IV TA $ Income from operations without Division IV $