Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $212,000 and the following divisional results. Division I II III IV Sales $246,000 $195,000 $498,000 $452,000 Cost of goods sold 198,000 192,000 304,000 247,000 Selling and administrative expenses 77,000 54,000 56,000 51,000 Income (loss) from operations $ (29,000) $ (51,000) $138,000 $154,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 73 % 92 % 77 % 79 % Selling and administrative expenses 41 60 48 62 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) 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 $enter contribution margin in dollars $enter contribution margin in dollars eTextbook and Media Save for LaterAttempts: 0 of 5 usedSubmit Answer (b1) Prepare an incremental analysis concerning the possible discontinuance of Division I. (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 $enter a dollar amount $enter a dollar amount $enter a dollar amount Fixed costs Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount Selling and administrative enter a dollar amount enter a dollar amount enter a dollar amount Total fixed expenses enter a total dollar amount for the previous two amounts enter a total dollar amount for the previous two amounts enter a total dollar amount for the previous two amounts Income (loss) from operations $enter income or loss from operations amouont in dollar $enter income or loss from operations amouont in dollar $enter income or loss from operations amouont in dollar eTextbook and Media Save for LaterAttempts: 0 of 5 usedSubmit Answer (b2) 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).) Continue Eliminate Net Income Increase (Decrease) Contribution margin $enter a dollar amount $enter a dollar amount $enter a dollar amount Fixed costs Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount Selling and administrative enter a dollar amount enter a dollar amount enter a dollar amount Total fixed expenses enter a total dollar amount for the preious two amounts enter a total dollar amount for the preious two amounts enter a total dollar amount for the preious two amounts Income (loss) from operations $enter income or loss from operations amount in dollars $enter income or loss from operations amount in dollars $enter income or loss from operations amount in dollars eTextbook and Media Save for LaterAttempts: 0 of 5 usedSubmit Answer (b3) (c) Prepare a columnar condensed income statement for Crane Company, assuming Division II is eliminated. Division IIs unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CRANE COMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Divisions I III IV Total Sales $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Variable costs Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Selling and administrative enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Total variable costs enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts Contribution margin enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part Fixed costs Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Selling and administrative enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Total fixed costs enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts enter a subtotal of the previous two amounts Income (loss) from operations $enter a net income or loss amount $enter a net income or loss amount $enter a net income or loss amount $enter a net income or loss amount