Please help solve P20-5A

Prepare incremsemtal analysis concerning eimination of 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. divisions LO 61, A Division II IV XLS Sales $250,000 $200,000 $500,000 $450,000 Cost of goods sold Selling and administrative expenses 200,000 75.000 192,000 300,000 250,000 50,000 60,000 60,000 Income (loss) from operations- $(52,000) $(25,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division III IV Cost of goods sold Selling and administrative expenses 70% 90% 80% 75% 40 60 50 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. Continuing Problems 1009 Instructions (a) Compute the contribution margin for Divisions I and II (b) Prepare an incremental analysis concerning the possible discontinuance of (1) Divi sion I and (2) Division II. What course of action do you recommend for each division? (e) Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. (Use the CVP format.) Division II's unavoidable fixed costs are allocated equally to the continuing divisions. (d) Reconcile the total income from operations ($213,000) with the total income from operations without Division I (a) I$80,000 (c Income Il $132,800