Sunland Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $167,600 and the following divisional results: Division I || III IV Sales $518,800 $394,800 $311,400 $176,100 Cost of goods sold 290,100 245,900 272,800 153,000 Selling and administrative expenses 60,500 73,000 66,400 71,800 Income (loss) from operations $168,200 $75,900 $(27,800) $(48,700) The analysis reveals the following percentages of variable costs in each division: I || III IV Cost of goods sold 72% 89% 74% 92% Selling and administrative expenses 40 52 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. 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 Divisions III Divisions IV Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to O decimal places, eg. 125. Enter all negative amounts 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.) (1) Division III Division III: Keep Div. III Shut Div. III Income Increase (Decrease) Contribution margin $ $ $ Fixed costs Totals $ $ $ (2) Division IV Income Increase Division IV: Keep Div. IV Shut Div. IV (Decrease) Contribution margin $ $ $ Fixed costs Totals $ What course of action do you recommend for each division? Division III should be Division IV should be $ $ Prepare a condensed income statement in columns for Sunland 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 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.) < > > A $ SUNLANDMANUFACTURING COMPANY CVP Income Statement Div I Div II Div III $ $ 69 $ $ Prepare a condensed income statement in columns for Sunland 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 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.) SUNLANDMANUFACTURING COMPANY CVP Income Statement $ Div I $ Div II $ Div III Total $ $ $ $ 999 Reconcile the total income from operations of $167,600 with the total income from operations without division IV. $ SA Income from operations with Division IV Incremental income from eliminating Division IV 69 $ Income from operations without Division IV $