1 [10 points]. Lieme Corporation sells appliances through two divisions: Household and Professional. The company's estimated 2021 income statement, by division, is below: Sales Variable costs Contribution margin $15,000,000 Household Division Professional Division Total $90,000,000 $7,000,000 $97,000,000 75,000,000 5,500,000 $ 1,500,000 80,500,000 Divisional fixed costs 13,000,000 700,000 Division margin $ 2,000,000 $ 800,000 Allocated corporate-level fixed costs Net income (loss) $ 1,500,000 500,000 900,000 $16,500,000 13,700,000 $ 2,800,000 2,400,000 $ (100,000) $ 400,000 The company's January 1, 2021 balance sheet is below: Household Division Professional Corporate Division Level Total Cash Accounts Receivable $ 1,800,000 $ 140,000 7,500,000 Inventory Plant and Equipment net Total Assets 6,250,000 600,000 1,000,000 2,000,000 1,000,000 $17,550,000 $ 2,740,000 $ $ 1,940,000 8,100,000 7,250,000 3,000,000 $20,290,000 Accounts Payable $ 6,250,000 $ 460,000 $ 6,710,000 Long Term Debt $3,580,000 3,580,000 Shareholder equity 10,000,000 10,000,000 Total Liabilities and Stockholder Equity $ 6,250,000 $ 460,000 $13,580,000 $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. 1. From the point of view of the company's owners, should the Household Division make the cost-reduction investment? From the point of view of the company's owners, should the Professional Division make the cost-reduction investment? Provide quantitative justification for your answer.