Sandhill Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 216,600 and the following divisional results. Division
I II III IV
Sales $250,000 $198,000 $499,000 $447,000
Cost of goods sold 195,000 195,000 298,000 250,000
Selling and administrative expenses 70,400 63,000 57,000 49,000
Income (loss) from operations ($15,400) ($60,000) $144,000 $148,000

Analysis reveals the following percentages of variable costs in each division.
I II III IV
Cost of goods sold 74% 92% 78% 73%
Selling and administrative expenses 37 57 51 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.

Required:
Prepare a columnar condensed income statement for Sandhill Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions.