Calculate contribution margin and prepare incremental analysis for decision whether to eliminate divisions. P7.54B (LO 6) Laos Manufacturing Company has four operating divisions. During the first quarter or 2022, the company reported total income from operations of $36,000 and the following results for the divisions: Division Kelowna Brandon Sherbrooke Moncton Sales Cost of goods sold Selling and administrative expenses $405,000 $730,000 $920,000 $500,000 207,000 400,000 480,000 576,000 100,000 390,000 246,000 120,000 Income (loss) from operations $ (95,000) $ 43,000 $ 98,000 $(10,000) An analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative Kelowna Brandon Sherbrooke Moncton 90% 80% 90% 95% 60 60 70 80 expenses Closing any division would save 70% of the fixed costs and expenses for that division. Top management is deeply concerned about the unprofitable divisions (Kelowna and Moncton). The consensus is that one or both of them should be eliminated. Instructions a. Calculate the contribution margin for the two unprofitable divisions. a. Moncton: $33,500 b. Prepare an incremental analysis for the possible elimination of (1) the Kelowna division and (2) the Moncton division. What course of action do you recommend for each division? c. Prepare a condensed income statement in columns using the CVP format for Laos Manufacturing Company, assuming (1) the Kelowna division is eliminated, and (2) the unavoidable fixed costs and expenses of the Kelowna division are allocated 30% to Brandon, 50% to Sherbrooke, and 20% to Moncton. c. Income Sherbrooke: $86,000 d. Compare the total income from operations with the Kelowna division ($36,000) versus total income from operations without this division