Wildhorse Manufacturing Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $139,800 and the following divisional results: Division 11 IV Sales $504,000 $393,000 $313,400 $175,700 297,000 241,800 273,200 151,800 Cost of goods sold Selling and administrative expenses Income (loss) from operations 67,400 74,400 66,800 73,900 $139,600 $76,800 $(26,600) $(50,000) The analysis reveals the following percentages of variable costs in each division: 1 11 III IV Cost of goods sold 70% 92% 74% 92% Selling and administrative expenses 39 50 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 an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. (Round answers to 0 decimal places, e.g. 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 111 Income Increase (Decrease) Division III: Keep Div. III Shut Div. III Contribution margin $ $ $ $ Fixed costs Totals $ $ $ (2) Division IV Income Increase (Decrease) Division IV: Keep Div. IV Shut Div. IV Contribution margin $ $ Fixed costs Totals $ $ $ What course of action do you recommend for each division? Division III should be Division IV should be