Cullumber Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 211,200 and the following divisional results. Division 1 Il IV Sales $ 254,000 $ 197,000 $ 499,000 $ 451,000 Cost of goods sold 197,000 192,000 302.000 246,000 Selling and administrative expenses 69,800 63,000 65,000 55,000 Income (loss) from operations $ ( 12.800) $(58,000) $ 132,000 $ 150,000 Analysis reveals the following percentages of variable costs in each division. 1 II TII IV Cost of goods sold 67 % 90 % 82 % 77 % Selling and administrative expenses 41 62 51 60 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. & Captured with Xb Your answer is correct Corpule the contribution margin tor Divisions I and II. (Enter negative arnounts using either a negathe sign preceding the numbereg. -45 ar parentheses eg. (454) Division ! Division II Contribution margin S 93292 -14163 Textbook and Media e Attempts: 2 of 5 used (51) Your answer is correct. Prepare an incremental analysis roncerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the number eg, -45 or parentheses es. (45).) Net Income Increase Decreasel Continue Eliminate Contribution marcin 9 93992 S $ 0 $ -93592 Fixed costs Cost of goods sold 65010 32505 1 32505 Selling and administrative 41182 i 20551 0591 Total xed expenses 106192 53096 53096 Incoin (loski fram cration $ $ - 12600 $ -53096 -10296 Textbook and Media Attempts: 2 of 5 used (52) Your answer scorrect. Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number e... -45 or parentheses e... (45).] Net Income Increase Decrease! Continue Eliminate Contributian narin $ -7680 $ 0 $ 11680 Fixed costs Cast ol goods sold 19201 9620 9000 Selling and Birninistrative 23910 i 1.970 i 11970 Total xed expenses 43140 2:570 1 21570 Income (loss) from operations $ -53300 S -21570 $ 36430 e Textbook and Media Attempts: 4 of 5 used Captured with Xnip CULLUMBERCOMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Divisions IV Sales $ 254000 $ 499000 451000 $ Variable costs Cost of goods sold 65010 Selling and administrative 41182 Total variable costs 106192 Contribution margin 147808 Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations $ $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit