Cant figure out section (b2)

Problem 7-5 (Part Level Submission) Pina Company has four operating divisions. During the rst quarter of 2017, the company reported aggregate income from operations of $212,300 and the following divisional results. Division I II III IV Sales $254,000 $199,000 $501,000 $443,000 Cost of goods sold 204,000 190,000 301,000 247,000 Selling and administrative expenses 69,700 61,000 57,000 55,000 Income (loss) from operations $ (19,700) $ (52,000) $143,000 $141,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 67 % 90 % 82 /o 75 % Selling and administrative expenses 39 62 50 58 Discontinuance of any division would save 50% of the xed 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) Your answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Division I Division II Contribution margin 90, 137 (9,820)V (b2) Prepare an incremental analysis concerning the possible discontinuance of Division 11. (Round answers to 0 decimal places, e.g. 1525. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Continue Eliminate Increase (Decrease) Contribution margin $ $ Fixed costs Cost of goods sold E E Selling and administrative [:I E E Total xed expenses Income (loss) from operations $ UM U