1) Baris Diary Co. has three product and divisions for production process of Milk, Yogurt and Cheese. Company's data show following result for 2014: Total Revenue Variable costs (-) Contribution Margin Direct fixed costs (-) Allocated fixed costs(-) Operating Income Milk Yogurt 100.000 TL 125.000TL 60.000 50.000 40.000 75.000 5.000 15.000 20.000 25.000 15.000 35.000 Cheese 75.000TL 60.000 15.000 6.000 15.000 (6.000) Company's variable expenses are traced to product directly. Baris Diary Co. attributes indirect fixed costs based on sales amount of the products. Allocated cost is unavoidable, means when a product is dropped costs are allocated to other products. Since the production of cheese has a loss, company plans that this products should be dropped and discontinued. If this product is dropped the sales of Milk and Yogurt will increase by 30%. The 5.000TL of indirect cost consist of machinery and this machinery is rented and company will earn additional 5.000TL if the departmant is closed. Required: Prepare an incremental analysis showing the effect of closing the Cheese division on the company's income, and should be cheese department discontinued. Please indicate with your computation