Question: Please help me to solve this question correctly. . Thank you 7.5 (LO 6), AN Reported aggregate in SILO 6), AN Khiw NV has four

 Please help me to solve this question correctly. . Thank you
Please help me to solve this question correctly. . Thank you

7.5 (LO 6), AN Reported aggregate in SILO 6), AN Khiw NV has four operating divisions. During the first quarter of 2020, the company daggregate income from operations of 213.000 and the following divisional results. Division III IV 250.000 200,000 500,000 450,000 200,000 192.000 300.000 Selling and administrative expenses 250,000 W e expenses 75.000 60.000 60.000 50.000 Income (loss) from operations (25,000) (52,000) 140.000 150.000 Prepare incremental analysis concerning elimination of divisions. Sales Cost of goods sold alysis reveals the following percentages of variable costs in each division TIT Cost of goods sold Selling and administrative expenses 705 40 90% 60 80 SO IV 759 60 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 II). Consensus is that one or both of the divisions should be discontinued. a. I 80,000 Instructions a. Compute the contribution margin for Divisions I and II. b. Prepare an incremental analysis concerning the possible discontinuance of (1) Division 1 and (2) Division II. What course of action do you recommend for each division? c. Prepare a columnar condensed income statement for Khiw, assuming Division II is eliminated. (Use the CVP format.) Division II's unavoidable fixed costs are allocated equally to the continuing divisions. d. Reconcile the total income from operations (213.000) with the total income from operations with out Division II. Income III 132.800

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