Cheyenne Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $231,300 and the following divisional results Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $253,000 197,000 75,700 $(19,700) Division II III $195,000 $502,000 190,000 295,000 57,000 60,000 $ (52,000) $147,000 IV $449,000 246,000 47,000 $156,000 Analysis reveals the following percentages of variable costs in each division Cost of goods sold Selling and administrative expenses I 67 % 37 I 89% 62 II 81% 48 IV 73% 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. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the e.g. -45 or parentheses e.g. (45).) Division 1 Division II Contribution margin $ Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to O decimal places, e.g. amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or pa e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations What course of action do you recommend for each division? Division I Division II CHEYENNE COMPANY CVP Income Statement Divisions TIT Total Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative CODCor goes CALCULATOR P Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations