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.

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).)

(2) Division I Division II

Contribution margin $.........................

Prepare an increment analysis concerning the possible discontinuance of division1, (enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).

Contribution margin 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.

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).)

(2) Division I Division II

Contribution margin $.........................

Prepare an increment analysis concerning the possible discontinuance of division 1, (enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).

Contribution margin Continue Eliminate Net Income Increase (Decrease)

Fixed costs

Cost of goods sold

Selling and administrative

Total fixed expenses

Income (loss) from opertations

Continue Eliminate Net Income Increase (Decrease)

Fixed costs

Cost of goods sold

Selling and administrative

Total fixed expenses

Income (loss) from operations