Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from certions of $12.700 d divisional results: o Division III TV Sales $509,500 $418,600 $313,300 $179,300 Cost of goods sold 289,700 249,000 266,600 154,800 Selling and administrative expenses 60,100 75,400 67,400 75,000 Income (loss) from operations $159,700 594,200 $(20,700) S(50,500) The analysis reveals the following percentages of variable costs in each division 1 Cost of goods sold 70% Selling and administrative expenses 38 11111 IV 89% 74 92% 48 65 70 Discontinuance of any division would save 50% of the foxed costs and expenses for that division Top management is very concerned about the unprofitable divisions (II and IV). The consensus is that the company should discontinue one or both of these Calculate the contribution margin for divisions II and IV (Enter negative amounts using either a negative sin preceding the number -15 or parentheses (451) Divisions Divisions IV Contribution margin Prepare an incremental analysis for the possible discontinuance of (1) division Illand (2) division IV. (Round answers to using either a negative sign preceding the number eg.-45 or parentheses g. (45):) decimal places, 125. Enter a negative amounts (1) Division III Division III: Keep Div. III Income Increase (Decrease) Shut Div. III Contribution margin Fixed costs MANAGERIAL ACCOUNTING (BUS 254 STARGARD VIEW PRINTER VERSION BACK NEXT Prepare an incremental analysis for the possible discontinuance of (1) division and (2) division IV (Round answers to using either a negative sign preceding the number -45 or parentheses 9- (45)-) deal places, eg. 125. Enter a negative amounts (1) Division III Income Increase Division IIT: Keep Div. III Shut Div. III Contribution marge Fixed costs Totals (2) Division IV Division IV: Keep Div. TV Shut Div. IV Income Increase (Decrease) Contribution margin Fixed costs Totals What course of action do you recommend for each division? Division III should be Division IV should be navo date fixed costs are allocated Prepare a condensed income statement in columns for Ribeiro Manufacturing, assuming division IV is eliminated. Use the CVP format. Division I equally to the continuing divisions (Enter loss using either a negative sign preceding the number .g. -45 or parentheses (451) RIBEIRO MANUFACTURING COMPANY CVP Income Statement Division IV should be Prepare a condensed income statement in columns for Ribeiro Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidable fored costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) RIBEIRO MANUFACTURING COMPANY CVP Income Statement DIVI Div II Div III Total Reconcile the total income from operations of $182,700 with the total income from operations without division IV. Income from operations with Division IV Incremental income from eliminating Division IV Income from operations without Division IV Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER MANAGERIA STANDARD VIEW PRINTER VE d for each division? Sales Variable costs Fixed costs Contribution margin in columns for Ribeiro Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidabi er loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net income / (loss) LO MANUFACTURING COMPANY CVP Income Statement Div II Div III Total Reconcile the total income from operations of $182,700 with the total income from operations without division IV. Income from operations with Division IV Incremental income from eliminating Division IVS Income from operations without Division TV What course of action do you recommend for each division STANDARD VIEW PR Division III should be Division IV should be March 31, 2020 For the Quarter Ended March 31, 2020 Prepare a condensed incon equally to the continuing d For the Year Ended March 31, 2020 suming division IV is eliminated. Use the CVP format. Division IV's una preceding the number e.g.-45 or parentheses e.g. (45).) DIVI Div II Div III Total Reconcile the total income from operations of $182,700 with the total income from operations without division IV Income from operations with Division IV Incremental income from eliminating Division IV