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Current Attempt in Pub Wildhorse Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregale Income from operations of

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Current Attempt in Pub Wildhorse Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregale Income from operations of 5181,400 and the following divisional results: Division 11 IV III $406,300 $312.800 $505,900 $176,000 Sales 241.200 269,400 153,000 288.500 Cost of goods sold 52.200 72,900 69.200 73.200 Selling and administrative expenses $165.200 $92.200 $(25,800) $(50,200) Income loss) from operations The analysis reveals the following percentages of variable costs in each division 1 11 III IV Cost of goods sold 72% 92% 74% 92% Selling and administrative expenses 41 52 65 70 Dentinuance of audiend 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 (III and IV). The consensus is that the company should discontinue one or both of these divisions Calculate the contribution margin for divisions Illand IV. (Enter negative amounts using either a negative sign preceding the nunibers 45 or parentheses es (4500 Divisions It! Divisions IV Contribution margin Prepare an incrementarasis for the possible discontinuance of (1) division Illand (2) division IV. (Round answers to O decimal places, s 125. Enter alt negative amounts using either a negative sign preceding the number eg. 45 or parenthes (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem (1) Divine Division Keep Div. Income Increase Shut Div. Princess for the possible discontinuance of (1) division it and (2) division IV. (Round ecimals. 3. 125. Enter all negative amountsssing either a native in preceding the number 45 or portes (451 While alternate approaches are possible, irrelevant fixed costs should be included in both options whising this problem will Income Increase (Decrease) Dirishat Keep Div Shut Div. lll Care 5 5 Feeds Total Din IV ble Kero IV ShutDIV Income Increase (Decrease Contban 3 $ Dion Income Increase Decrease) Divisin IV Keep Div. IV Shut Div. IV Cartonas What cowo todo y recommend for each division Dhe DV should Prepare a concerned income statement in columns for Wildhorse Manufacturing, assuming division IV is eliminated. Use the CVP format. Din Ismoidable feed costs are allocated equally to the continuing divisions. (Enter loss using either a negative met e numbers. 45 or parentheses es (45) While alternate approaches are possible, irrelevant fixed cold be included in both options when solving this problem WILDHORSEMANUFACTURING COMPANY CVP Income Statement DI Div Dlv lt -/15 UIT Question 1 of 34 > the total income from mations of 5181.400 with the total income from operations without division IV bution with don IV Dion IV $ when IV

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