Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. 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).) Contribution margin $ Fixed costs Continue Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ LINK TO TEXT Eliminate Net Income Increase (Decrease) $ What course of action do you recommend for each division? Division I Division II LINK TO TEXT +A Prepare a columnar condensed income statement for Bramble Company, assuming Division II is eliminated. Division II's 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).) Sales 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 $ BRAMBLE COMPANY CVP Income Statement Divisions I III IV Total Income (loss) from operations $ $ $ +A Question 5 Bramble Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $188,400 and the following divisional results. Division II Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations I $246,000 $197,000 $503,000 $444,000 205,000 194,000 305,000 250,000 71,600 64,000 60,000 $ (30,600) (61,000) $138,000 III IV 52,000 $142,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 74 % 88 % 78 % 76 % Selling and administrative expenses 37 61 50 59 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. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Contribution margin LINK TO TEXT Division I Division II Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. 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).) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Continue $ Income (loss) from operations $ LINK TO TEXT Eliminate Net Income Increase (Decrease)