Question: Hello, I am having trouble with this assignment problem. Can you help me, please? Problem 12-5 Novak Company has four operating divisions. During the first

Hello, I am having trouble with this assignment problem. Can you help me, please?

Hello, I am having trouble with this assignment problem. Can you help

Problem 12-5 Novak Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $200,300 and the following divisional results. Division II III IV Sales $253,000 $198,000 $495,000 $447,000 Cost of goods sold 198,000 190,000 303,000 254,000 Selling and administrative expenses 74,700 65,000 56,000 52,000 Income (loss) from operations $ (19,700) $ (57,000) $136,000 $141,000 Analysis reveals the following percentages of variable costs in each division. II III IV Cost of goods sold 58 % 90 % 79 % 75 % Selling and administrative expenses 37 61 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 (1 and II). Consensus is that one or both of the divisions should be discontinued. 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 $190,721) $ (12000) Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division 1. (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 (90,721 (90,721) Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations Your answer is partially correct. Try again. Prepare an incremental analysis concerning the possible discontinuance of Division II. (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).)

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