Cullumber Company has four operating divisions. During the first quart et of 2022 the company reported ageregate income from operations of $211,200 and the following divisional results Analyais revetals the following percentases of variable costs in noch divesion. Analysis reveals the following percentages of variable costs in each division. Discontinuance of any division would save 50x of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and ili. Corriensis is that one or both of the divisions should be discontinued. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign precediry the number es 45 or parentheses cg(45) Prepare an incremental analysis conceming the possible discontinuance of Division i. Enter negative amounts using ether ancadtive slgn preceding the number es. 45 or parentheses eg. (45). Prepare an incremental analysis concerning the possible discontinuance of Division ili. (Enter negative amountr using either a negative sign preceding the number eg 45 or parentheses es. (45). Prepare a columnar condensed income statement for Cullumber Company, assuming Division II is eliminated, Division II's unavoidable foed costs are allocated equally to the continuing divisions. (Enter negative amounts using elther a nejative sign preceding the number es. 45 or parentheses eg. (45).) Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations Cullumber Company has four operating divisions. During the first quarter of 2022 , the company reported aggregate income from operations of $211,200 and the following divisional results. Analysis reveals the following percentages of variable costs in each division. Analysis reveals the following percentages of variable costs in each division. 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. (a) Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg (45).) Compute the contribution margin for Divisions I and II. (Enter negative amounts using elther a negative sign preceding the number eg. 45 or parentheses eg. (45).). Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using elther a negative sign preceding the number eg. 45 or parentheses eg. (45).). Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negatlve amounts using either a negotive sign preceding the er esg-45 or porentheses eg (45)) What course of action do you recommend for each division? Division I Division II Prepare a columnar condensed income statement for Cullumber Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number eg 45 or parentheses eg.(45). . Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs income (loss) from operations $
