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 || III IV Sales $247,000 $198,000 $501,000 $448,000 Cost of goods sold 200,000 189,000 298,000 254,000 Selling and administrative expenses 75,000 63,000 63,000 45,000 Income (loss) from operations $ (28,000) $ (54,000) $140,000 $149,000 Analysis reveals the following percentages of variable costs in each division. | II III IV Cost of goods sold 67 % 88 % 81 % 78 % 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. 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).) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations LA $ Continue Eliminate 532620 536850 201180 189840 GA Net Income Increase (Decrease) 4,230 11,340 124440 110895 13,545 325620 300735 24,885 207000 $ 236115 $ 29,115