Sunland Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $207,800 and the following divisional results. Division 1 11 III IV Sales $247,000 $198,000 $497.000 $449,000 195.000 195,000 301,000 247,000 Cost of goods sold Selling and administrative expenses Income (loss) from operations 74,200 57,000 60,000 54,000 $(22,200) $(54,000) $136,000 $148,000 Analysis reveals the following percentages of variable costs in each division 1 11 III IV 73 % 90 % 77 %6 76 % Cost of goods sold Selling and administrative expenses 40 57 52 58 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. (a) Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg.(45).) Division 1 Division 11 Contribution margin $ e Textbook and Media Attempts: 0 of 5 used Submit Answer Save for Later (61) Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (451) Continue Eliminate Net Income Increase (Decrease) Contribution margin $ $ Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ $ e Textbook and Media Attempts: 0 of 5 used Submit Antwer Save for Later b2 (62) Prepare an incremental analysis concerning the possible discontinuance of Division II (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (451) Continue Net Income Increase (Decrease) Eliminate Contribution margin Fixed costs I cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations $ e Textbook and Media Surve for Later Attempts: 0 of 5 used Submit Answer (53) What course of action do you recommend for each division? Division 1 Division 11 eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer = CVP Income Statement For the Quarter Ended March 31, 2022 Divisions III 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 ivisions IV Total $ $ ta $ $