Unlimited Soda Company has four operating divisions. During the first quarter of 2018, the company reported aggregate income from operations of 213,000 and the following divisional results.

In-Class Unlimited Soda Company has four operating divisions. During the first quarter of 2018, the company reported aggregate income from operations of $213,000 and the following divisional results Division IV $250,000 $200,000 $500,000 $450,000 192,000300, Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations 200,000 75,000 000 250,000 50,000 60,000 60,000 $(25,000) $ (52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. IV Cost of goods sold Selling and administrative expenses 75% 40 80% 50 70 60 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 (l and II). Consensus is that one or both of the divisions should be discontinued Required: 1. Compute the contribution margin for Divisions I and II. 2. Prepare an analysis related to the possible discontinuance of: 1) Division I; and 2) Division Il. What do you recommend? Prepare an income statement for USC, assuming Division Il is eliminated. Reconcile the total income from operations ($213,000) with the total income from operations without Division II 3. 4