Problem 12-5 Pina Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $212,300 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Encome (loss) from operations Division I II III $254,000 $199,000 $501,000 204,000 190,000 301,000 69,700 61,000 57,000 $(19,700) $ (52,000) $143,000 IV $443,000 247,000 55,000 $141,000 analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses I 67 % 39 II 90 % 62 III 82 % 50 IV 75 % 5 8 Discontinuance of any division would save 50% of the fixed costs and expenses for that division. op management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. Continue Eliminate Increase (Decrease) Contribution margin 137) Fixed costs Cost of goods sold 167,320) 320) 7 (33,660) (33,660) 33,660 Selling and administrative (21,259) -63,776 Total fixed expenses (109,837) (54,919) 54,919 Income (loss) from operations 9,700) (54,919) (35,219) LINK TO TEXT Your answer is partially correct. Try again. 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).) Continue Eliminate Net Income Increase (Decrease) Contribution margin (9,820) Fixed costs Cost of goods sold (67,320) 190,000 33,660 Selling and administrative 61,000 Cost of goods sold (67,320) 190,000 33,660 Selling and administrative 61,000 RTRO Total fixed expenses Income (loss) from operations (52,000) LINK TO TEXT