Current Attempt in Progress Pharoah Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $207,000 and the following divisional results. Division I II III IV Sales $247,000 $198,000 $501,000 $448,000 200,000 189.000 298,000 254,000 Cost of goods sold Selling and administrative expenses Income (loss) from operations 75,000 63,000 63,000 45,000 $(28,000) $(54,000) $140,000 $149,000 Analysis reveals the following percentages of variable costs in each division, 1 II III IV 67 % 88 % 81 % 78 % Cost of goods sold Selling and administrative expenses 38 57 50 57 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 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 ! Division 11 Contribution margin $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (51) 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 $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income loss) from operations $ $ $ eTextbook and Media Save for later Attempts:0 of 5 used Submit Answer (52) 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 eg. (45).) Continue Eliminate Net Income Increase (Decrease) Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ eTextbook and Media Save for later Attempts: 0 of 5 used Submit Answer (53) (53) What course of action do you recommend for each division? Division 1 Division 11 eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Prepare a columnar condensed income statement for Pharoah Company, assuming Division II is eliminated Division II'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-8. (45).) PHAROAH COMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Divisions III 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 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 $ $ $