gnoredmte P20-5A Brislin Company has four operating divisions. During the first quarter of 2017 the company reported aggregate income from operations of $213,000 and the following divisional results. Division IV $250,000 $%200,000 $500,000 $450,000 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations 250,000 50,000 $ (25,000) $ (52,000) $140,000 $150,000 200,000 75,000 192,000 60,000 60,000 Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses 70% 40 90% 60 80% 50 IV 75% 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). Con- sensus is that one or both of the divisions should be discontinued