Prepare incremental analysis concerning elimination of divisions P7.5A (LO 6), AN Brislin Company has four operating divisions. During the first quarter of 2020 the company reported aggregate income from operations of $213,000 and the following divisional results Excel Division IV I $200,000 192,000 60,000 $450,000 250,000 50,000 $250,000 200,000 75,000 $500,000 300,000 Sales Cost of goods sold Selling and administrative expenses 60,000 $(52,000) $140,000 $150,000 Income (loss) from operations $(25,000) Analysis reveals the following percentages of variable costs in each division. IV I 75% 70% 90% 80% Cost of goods sold Selling and administrative expenses 60 60 40 50 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. Instructions a. Contribution margin I $80,000 a. Compute the contribution margin for Divisions I and II. b. Prepare an incremental analysis concerning the possible discontinuance of (1) Division I and (2) Division II. What course of action do you recommend for each division? c. Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. (Use the CVP format.) Division IIl's unavoidable fixed costs are allocated equally to the continuing divisions c. Income III $132,800 d. Reconcile the total income from operations ($213,000) with the total income from operations with- out Division