Problem 12-5 Grouper Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $212,900 and the following divisional results. Division II III IV $253,000 Sales $198,000 $505,000 $445,000 Cost of goods sold 295,000 203,000 194,000 253,000 Selling and administrative expenses 75,100 57,000 61,000 50,000 $ (25,100) $ (53,000) $149,000 $142,000 Income (loss) from operations Analysis reveals the following percentages of variable costs in each division. II III IV Cost of goods sold 74 % 91 % 80 % 74 % Selling and administrative expenses 41 58 50 57 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. Division I Division II Contribution margin LINK TO TEXT Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations 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).) Net Income 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 Divisions Total III IV 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 Income (loss) from operations %24