Sheridan Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $154,900 and the following divisional results: Division I || III IV Sales $505,800 $399,000 $308,900 $178,800 Cost of goods sold 284,000 246,500 272,600 155,400 Selling and administrative expenses 61,500 73,800 69,000 74,800 Income (loss) from operations $160,300 $78,700 $(32,700) $(51,400) The analysis reveals the following percentages of variable costs in each division: The analysis reveals the following percentages of variable costs in each division: || III IV Cost of goods sold 72% 88% 74% 92% Selling and administrative expenses 42 49 65 70 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 (III and IV). The consensus is that the company should one or both of these divisions. Calculate the contribution margin for divisions III and IV. (Enter negative amounts using either a negative sign preceding the n e.g. -45 or parentheses e.g. (45).) Divisions IV 482490 $ Divisions III Contribution margin $ 145918 Calculate the contribution margin for divisions III and IV. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Contribution margin Question Part Score Divisions III Divisions IV 482490 $ 145918 Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to O decimal places, e.g. 125. Enter all negative amounts-using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) (1) Division III Income Increase Division III: Contribution margin Fixed costs Totals $ (2) Division IV +A $ Keep Div. III Shut Div. III 482490 $ $ SA Income Increase (Decrease) -482490 Income Division IV: Keep Div. IV Shut Div. IV 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 $ $ format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses eg. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Div 1 SHERIDANMANUFACTURING COMPANY CVP Income Statement Div II $ $ $ Div III Reconcile the total income from operations of $154,900 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 $