Please I need help with the question b2.

Can you show me your explanations please? Thanks

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $188,400 and the following divisional results. Division 1 11 ||| IV Sales $246,000 $197,000 $503,000 $444,000 Cost of goods sold 205,000 195,000 305,000 250,000 Selling and administrative expenses 71,600 63,000 60,000 52,000 Income (loss) from operations $(30,600) $ (61,000) $138,000 $142,000 Analysis reveals the following percentages of variable costs in each division. 1 11 ||| IV Cost of goods sold 74 % 88 % 78 % 76 % Selling and administrative expenses 37 61 50 59 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) 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 $ $ eTextbook and Media Attempts: 1 of 3 used (b1) 67808 -13030 (b1) Your answer is correct. Prepare an incremental analysis concerning the possible discontinuance of Division 1. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Contribution margin 67808 -67808 Fixed costs 53300 i 26650 Cost of goods sold Selling and administrative 45108 i 22554 i 49204 98408 -18604 -30600 Total fixed expenses Income (loss) from operations $ 0 26650 i 22554 i 49204 49204 $ (62) Prepare an incremental analysis concerning the possible discontinuance of Division II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate 13030 Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations eTextbook and Media $ -13030 0