Prepare a columnar condensed income statement for Swifty Company, assuming Division II is eliminated. Division IIs unavoidable fixed costs are allocated equally to the continuing divisions. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

SWIF COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions Total III IV 249000 Sales 450000 504000 Variable costs Cost of goods sold 443520 355500 147260 Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative 0 0000 00 D000 00 000 00 Division II III IV ales $249,000 $200,000 $504,000 $450,000 ost of goods sold 199,000 191,000 296,000 249,000 elling and administrative expenses 76,000 63,000 64,000 50,000 ncome (loss) from operations $ (26,000) $ (54,000) $144,000 $151,000 nalysis reveals the following percentages of variable costs in each division. II III IV ost of goods sold 74 % 88 % 79 % 74 % elling and administrative expenses 39 60 61 51 -:...... Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers enter the amount using either a negative sign preceding the number e.g. -45 or parentheses Net Income Increase (Decrease) Continue Eliminate Contribution margin (5880) 5880 Fixed costs Cost of goods sold 11460 22920 11460 Selling and administrative 12600 25200 12600 Total fixed expenses 48120 24060 24060 (54000) (24060) 29940 income (loss) from operations Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decin enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) (72100) Contribution margin 72100 Fixed costs Cost of goods sold 51740 25870 25870 Selling and administrative 46360 23180 23180 Total fixed expenses 98100 49050 49050 -26000 -23050 income (loss) from operations -49050 SHOW