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).)

		Continue		Eliminate		Net Income Increase (Decrease)
Contribution margin		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Fixed costs
Cost of goods sold		enter a dollar amount		enter a dollar amount		enter a dollar amount
Selling and administrative		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total fixed expenses		enter a total dollar amount for the preious two amounts		enter a total dollar amount for the preious two amounts		enter a total dollar amount for the preious two amounts
Income (loss) from operations		$enter income or loss from operations amount in dollars		$enter income or loss from operations amount in dollars		$enter income or loss from operations amount in dollars

2710 Ivanhoe Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $216,400 and the following divisional results. Division I Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250.000 204.000 76,600 $ (30,600) 11 $199,000 189.000 54.000 $ (44,000) $499.000 297.000 56.000 $146.000 $443,000 246,000 52.000 $145.000 Analysis reveals the following percentages of variable costs in each division. 1 IV 71 % 91 95 81 73 95 Cost of goods sold Analysis reveals the following percentages of variable costs in each division. 1 11 IV 91 % Cost of goods sold Selling and administrative expenses 81 % 73 % 71 % 37 61 49 58 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 di be discontinued. Continue Eliminate Net Income Increase (Decrease) Contribution margin $ - 17310 $ i $ 17310 Fixed costs Cost of goods sold 15600 i 7800 i 7800 27090 13545 j 13545 Selling and administrative Total fixed expenses Income (loss) from operations 42690 i 21345 21345 $ -60000 $ -21345 $ 38655 e Textbook and Media Attempts: 2 of 5 us CVP Income Statement For the Quarter Ended March 31, 2022 Divisions 1 IV Total 250000 $ 499000 $ 447000 $ 1196000 144300 1 232440 i 182500 i 559240 26048 i 29070 i 28910 i 84028 170348 i 261510 i 211410 i 643268 79652 237490 235590 552732 -50700 -65560 -67500 -183760 -44352 -27930 -20090 -92372 94705 297477 102167 100605 $ $ 255255 -22515 136885 140885 CVP Income Statement For the Quarter Ended March 31, 2022 Divisions TV Sales 250000 $ 499000 $ Variable costs Cost of goods sold 144300 232440 1825 Selling and administrative 26048 i 29070 289 Total variable costs 170348 261510 i 2114 Contribution margin 79652 237490 Fixed costs Cost of goods sold -50700 -65560 Selling and administrative -44352 -27930 Total fixed costs 102167 i 100605 i 9470 $ -22515 Income (loss) from operations $ 136885 $ 14 um negative sign preceding the numbereg.-45 or parentheses eg. (45).) Continue Net Income Increase (Decrease) Eliminate Contribution margin $ 79652 $ o $ +79652 Fixed costs Cost of goods sold -50700 -25350 25350 Selling and administrative i -22176 22176 Total fixed expenses -95052 -47526 47526 S Income (loss) from operations - 15400 $ -47526 $ -32126 e Textbook and Media Attempts: 1 of 5 use 2710 Ivanhoe Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $216,400 and the following divisional results. Division I Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250.000 204.000 76,600 $ (30,600) 11 $199,000 189.000 54.000 $ (44,000) $499.000 297.000 56.000 $146.000 $443,000 246,000 52.000 $145.000 Analysis reveals the following percentages of variable costs in each division. 1 IV 71 % 91 95 81 73 95 Cost of goods sold Analysis reveals the following percentages of variable costs in each division. 1 11 IV 91 % Cost of goods sold Selling and administrative expenses 81 % 73 % 71 % 37 61 49 58 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 di be discontinued. Continue Eliminate Net Income Increase (Decrease) Contribution margin $ - 17310 $ i $ 17310 Fixed costs Cost of goods sold 15600 i 7800 i 7800 27090 13545 j 13545 Selling and administrative Total fixed expenses Income (loss) from operations 42690 i 21345 21345 $ -60000 $ -21345 $ 38655 e Textbook and Media Attempts: 2 of 5 us CVP Income Statement For the Quarter Ended March 31, 2022 Divisions 1 IV Total 250000 $ 499000 $ 447000 $ 1196000 144300 1 232440 i 182500 i 559240 26048 i 29070 i 28910 i 84028 170348 i 261510 i 211410 i 643268 79652 237490 235590 552732 -50700 -65560 -67500 -183760 -44352 -27930 -20090 -92372 94705 297477 102167 100605 $ $ 255255 -22515 136885 140885 CVP Income Statement For the Quarter Ended March 31, 2022 Divisions TV Sales 250000 $ 499000 $ Variable costs Cost of goods sold 144300 232440 1825 Selling and administrative 26048 i 29070 289 Total variable costs 170348 261510 i 2114 Contribution margin 79652 237490 Fixed costs Cost of goods sold -50700 -65560 Selling and administrative -44352 -27930 Total fixed costs 102167 i 100605 i 9470 $ -22515 Income (loss) from operations $ 136885 $ 14 um negative sign preceding the numbereg.-45 or parentheses eg. (45).) Continue Net Income Increase (Decrease) Eliminate Contribution margin $ 79652 $ o $ +79652 Fixed costs Cost of goods sold -50700 -25350 25350 Selling and administrative i -22176 22176 Total fixed expenses -95052 -47526 47526 S Income (loss) from operations - 15400 $ -47526 $ -32126 e Textbook and Media Attempts: 1 of 5 use