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 IV Sales Cost of goods sold Selling Income (loss) from operations $250,000 $199,000 $498,000 $449,000 204,000 74,600 192,000 295,000 247,000 60,000 and administrative expenses 49,000 s (28,600) $ (56,000) $143,000 $153,000 63,000 Analysis reveals the following percentages of variable costs in each division. IV 76 % 61 Cost of goods sold 72 % 88 % 60 80 % 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 andII). Consensus is that one or both of the divisions should be discontinued 51 Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Division Division II Contribution margin Click if you would like to Show Work for this question: Compute the contribution margin for Divisions l and II. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Division I Division II Contribution margin s Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to o decimal places, e.g. 1525. 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 Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations What course of action do you recommend for each division? DivisionI Division II Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocate equally to the continuing divisions. (Round answers to o decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2017 Divisions IV Total 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) fromm operations