Problem 20-05A a, bl-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 and administrative expenses Income (loss) from operations $250,000 $199,000 $498,000 $449,000 192,000 295,000 247,000 49,000 $ (28,600) $(56,000) $143,000 $153,000 204,000 74,600 63,000 60,000 Analysis reveals the following percentages of variable costs in each division Cost of goods sold Selling and administrative expenses 40 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 II). Consensus is that one or both of the divisions should be discontinued 72 % 88 % 80% 51 76 % 61 Your answer is correct. Compute the contribution margin for Divisions I and II. (Ente Division I Division II Contribution margin 73280 7760 Prepare an incremental analysis concerning the possible discontinuance of Division I. (Enter negativ Net Income Increase (Decrease) Continue Eliminate Contribution margin 73280 0 -73280 Fixed costs Cost of goods sold 28560 28560 57120 Selling and administrative 22380 22380 44760 Total fixed expenses 50940 50940 109920 Income (loss) from operations 36640 50940 50940 Click if you would like to Show Work for this question: Open Show Work Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negati Net Income Increase (Decrease) Continue Eliminate (7760) Contribution margin Fixed costs Cost of goods sold 23040 11520 11520 Selling and administrative Total fixed expenses Income (loss) from operations 25200 12600 12600 48240 24120 24120 (56000)s 31880 (24120) Click if you would like to Show Work for this question: Open Show Work Your answer is correct. What course of action do you recommend for each division? Division I Continued Division II Eliminated Click if you would like to Show Work for this question: Open Show Work CARLA VISTA COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 Divisions Total 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 Click if you would like to Show Work for this question: O