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 = 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: 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 discontinue one or both of these divisions. Prepare a condensed income statement in columns for Sheridan Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number eg. -45 or parentheses eg. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Sales Variable costs Contribution margin Fixed costs Net income/(loss) Div I 505800 SHERIDANMANUFACTURING COMPANY CVP Income Statement For the Quarter Ended March 31, 2022 Div II Div III 399000 $ 308900 Prepare a condensed income statement in columns for Sheridan Manufacturing, assuming division IV is eliminated. Use the CVP format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter loss using either a negative sign preceding the number eg. -45 or parentheses eg. (45). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) SHERIDANMANUFACTURING COMPANY CVP Income Statement For the Quarter Ended March 31, 2022 57 S Div I Div II 505800 $ 399000 Div III Total 308900 $ 1213700 $