Problem 12-5 Flint Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $204,500 and the following divisional results. Division Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $253,000 199,000 75,500 $ (21,500) $195,000 192,000 60,000 $ (57,000) $504,000 300,000 64,000 $140,000 $446,000 248,000 55.000 $143,000 Analysis reveals the following percentages of variable costs in each division I II III IV Cost of goods sold 74% 89% 78% 73% Selling and administrative expenses 38 57 52 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 11). Consensus is that one or both of the divisions should be discontinued (45).) Compute the contribution margin for Divisions and II. (Enter negative amounts using either a negative ion aveceding the number ..-45 or parentheses Division 1 Division II Contribution margins decimal places, .q. 1525. If amount decreases net income then enter the amount using Prepare an incremental analysis concerning the possible discontinuance of Division 1 (Round answers to either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Seling and administrative Total fixed expenses Income (loss) from operations LINK TO TEXT decimal places, e.g. 1525. If amount decreases net income then enter the amount using Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to either a negative sign preceding the number e.g.-4S or parentheses e.g. (45)) Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations LINK TO TEXT What course of action do you recommend for each division? Division 1 Division 11 Prepare a columnar condensed income statement for Flint Company, assuming Division 1 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 eg.-45 or parentheses eg. (45).) FLINT COMPANY CVP Income Statement Divisions Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total floxed costs Income (loss) from operations