Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $210,600 and the following divisional results.

		Division
		I		II		III		IV
Sales		$245,000		$197,000		$504,000		$450,000
Cost of goods sold		200,000		192,000		301,000		249,000
Selling and administrative expenses		72,400		63,000		58,000		50,000
Income (loss) from operations		$ (27,400)		$ (58,000)		$145,000		$151,000

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

		I			II			III			IV
Cost of goods sold		73	%		91	%		82	%		75	%
Selling and administrative expenses		39			59			50			61

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 number 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. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Continue Net Income Increase (Decrease) Eliminate Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ 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).) 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 1 Division 11 Prepare a columnar condensed income statement for Crane Company, assuming Division Il is eliminated. Division Il's 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 1 IV Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations $ $ $