Problem 7-5A a, b1-b3, c (Part Level Submission) (Video) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $232,400 and the following divisional results. Division I II III IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $245,000 195,000 67,600 $ (17,600) $195,000 $495,000 $443,000 189,000 295,000 245,000 54,000 55,000 45,000 $ (48,000) $145,000 $153,000 Analysis reveals the following percentages of variable costs in each division. I II III IV 66 % 87 % 77 % 73 % Cost of goods sold Selling and administrative expenses 37 57 47 57 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. For the Quarter Ended March 31, 2020 Divisions 111 IV Total Sales Variable costs Cost of goods sold Selling and administrative Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative Total fixed costs Income (loss) from operations