$1/$ Bellevue, Inc. reported the following financial information for the year just ended:

Given this information, Bellevue is considering closing Division A and Division B$.$ Before

making a final decision, Bellevue's controller decided to separate the total costs into

variable costs, direct fixed costs and common fixed costs. The following chart shows the

controller's list of separated costs:

a$.$ Prepare a modified report, showing Bellevue's costs separated into variable,

direct fixed, and common fixed.

b$.$ Should Division A and Division B be dropped? Explain your answer.