operations of $181,600 and the following divisional results. Division 1 II IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 200,000 70,400 $(20,400) $198,000 195,000 63,000 $ (60,000) $499,000 305,000 65,000 $129,000 $443,000 255,000 55,000 $133,000 Analysis reveals the following percentages of variable costs in each division. 1 II III IV Cost of goods sold Selling and administrative expenses 66 % 38 88 % 57 81 % 52 76 % 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. 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 e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ $