Cullumber Company has four operating divisions. During the first quarter of 2022. the company reported aggregate income from operations of $ 193,000 and the following divisional results, Division II III IV Sales $250,000 $ 198,000 $ 496,000 $443.000 205,000 189.000 297.000 255,000 Cost of goods sold Selling and administrative expenses Income (loss) from operations 70,000 63,000 61.000 54,000 $125.000) $(54,000) $ 138,000 $ 134,000 Analysis reveals the following percentages of variable costs in each division. 1 11 III IV 69 % 8996 80 % 74 % Cost of goods sold 11 20 Income (loss) from operations $125,000) $(54,000) $ 138,000 $ 134.000 Analysis reveals the following percentages of variable costs in each division. 11 III IV 69% 89% 80 % 74 96 Cost of goods sold Selling and administrative expenses 37 61 51 58 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) Prepare an incremental analysis concerning the possible discontinuance of Division 11. (Enter negative amounts using either a negative sign preceding the number es -45 or parentheses es. (451) Net Income Increase Decrease) Continue Eliminate Contribution margin S 5 Fixed costs Cost of goods sold Selling and administrative Total wed expenses Income loss from operation $ Type here to search o 701 (63) What course of action do you recommend for each division? Division 1 Division 11 Continued Eliminated e Textbook and Media Save for Later Attempts:0 of 5 used 1 F Type here to search 100% ZDE