nored lh the deision to replace the old elevator. P21-5A Gutierrez Company has four operating divisions. During the first quarter of 2014, Prere he company reported aggregate income from operations of $213,000 and the followin divisional results. g concernin divisions (LO 7) XLS Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $250,000 $200,000 $500,000 $450,000 200,000 75,000 192,000 60,000 300,000 250,000 50,000 60,000 (25,000) (52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. I IL III IV 75% 90% 80% 75% Cost of goods sold 2 40 70 50 60 Selling and administrative expenses 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 (I and ID). Con- sensus is that one or both of the divisions should be discontinued