Problem 20-05A a, b1-b3, c (Video) (Part Level Submission) Carla Vista Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $211,400 and the following divisional results Division Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 $199,000 $498,000 $449,000 192,000 295,000 247,000 60,000 49,000 $ (28,600) $ (56,000) $143,000 $153,000 204,000 74,600 63,000 Analysis reveals the following percentages of variable costs in each division IV 76 % 61 Cost of goods sold Selling and administrative expenses 40 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 72 % 88 % 80 % 60 51 Your answer is partially correct. Try again Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin 73280 0 -73280 Fixed costs Cost of goods sold 57120 28560 28560 Selling and administrative 44760 22380 22380 Total fixed expenses 10992 50940 50940 Income (loss) from operations -3664 5094 -5094 Click if you would like to Show Work for this question: Open Show Work (b2) Your answer is partially correct. Try again Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter nega preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin 528310 Fixed costs Cost of goods sold 198440 Selling and administrative 118470 Total fixed expenses 316910 Income (loss) from operations 211400 45503 Click if you would like to Show Work for this question: Open Show Work