Problem 7-5 (Part Level Submission) Cheyenne Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $231,300 and the following divisional results. Sales Division II III $195,000 $502,000 190,000 295,000 57,000 60,000 $ (52,000) $147,000 $253,000 197,000 75,700 $ (19,700) Cost of goods sold IV $449,000 246,000 47,000 $156,000 Selling and administrative expenses Income (loss) from operations Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses I 67 % 37 II 89 % 62 III 81% 48 IV 73 % 59 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. (61) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to O 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 Increase (Decrease) Continue Eliminate Contribution margin $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations & $ LINK TO TEXT