1 [10 points]. Lieme Corporation sells appliances through two divisions: Household and Professional. The company's estimated 2021 income statement, by division, is below: Household Division Sales Variable costs Contribution margin Divisional fixed costs Division margin Allocated corporate-level fixed costs Net income (loss) Professional Division Total $90,000,000 $ 7,000,000 $97,000,000 75,000,000 5,500,000 $15,000,000 $ 1,500,000 13,000,000 700,000 $ 2,000,000 $ 800,000 1,500,000 900,000 80,500,000 $16,500,000 13,700,000 $ 2,800,000 2,400,000 $ 500,000 $ (100,000) $ 400,000 The company's January 1, 2021 balance sheet is below: Cash Accounts Receivable Inventory Plant and Equipment net Total Assets Accounts Payable Household Division Professional Corporate Division Level $ 1,800,000 $ 140,000 7,500,000 600,000 6,250,000 1,000,000 2,000,000 1,000,000 $17,550,000 $ 2,740,000 $ - $ 6,250,000 $ 460,000 $3,580,000 10,000,000 Total $ 1,940,000 8,100,000 7,250,000 3,000,000 $20,290,000 $ 6,710,000 Long Term Debt Shareholder equity Total Liabilities and Stockholder Equity $ 6,250,000 $ 460,000 $13,580,000 3,580,000 10,000,000 $20,290,000 For simplicity, assume that the company's December 31, 2021 balance sheet is expected to be exactly the same as the January 1, 2021 balance sheet. The company uses a company-wide required annual rate of return of 15%. Early in 2021, an internal consulting project identified identical cost-reduction opportunities at both divisions. For each division, this would require a one-time investment of $180,000; annual cost reduction at each division would equal $40,000. 4. If divisional managers' incentive plans are changed as described in part 3 above, will the top manager of the Household Division make the cost-reduction investment? Will the top manager of the Professional Division make the cost-reduction investment? Provide quantitative justification for your answers