Ivanhoe Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $195,900 and the following divisional results: Division I IV Sales $519,600 $418,100 $311,300 $176,300 293,500 247,500 265,600 150,000 Cost of goods sold Selling and administrative expenses 56,000 79,100 63,000 74,700 Income (loss) from operations $170,100 $91,500 $(17,300) $(48,400) The analysis reveals the following percentages of variable costs in each division: I II III IV 70% 90% 75% 92% Cost of goods sold Selling and administrative expenses 39 52 65 70 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 III and IV. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Divisions III Divisions IV Contribution margin $ $ Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to 0 decimal places, e.g. 125. Enter all negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) (1) Division III Income Increase (Decrease) Division III: Keep Div. III Shut Div. III Contribution margin $ $ $ Fixed costs Totals $ $ $ 12 Dicion IX/ (2) Division IV Income Increase (Decrease) Division IV: Keep Div. IV Shut Div. IV Contribution margin $ $ $ Fixed costs Totals $ $ $ What course of action do you recommend for each division? Division III should be Division IV should be continued eliminated Prepare a condensed income statement in columns for Ivanhoe Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) IVANHOEMANUFACTURING COMPANY CVP Income Statement v Div 1 Div II Div III $ Reconcile the total income from operations of $195,900 with the total income from operations without division IV. Income from operations with Division IV $ Incremental income from eliminating Division IV $