1 points Sa Trump Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the do-it-yourself homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December 31, 2013 are presented below: Timber Division Consumer Division Total Sales $1,500,000 $500,000 $2,000,000 Cost of goods sold 900,000 350,000 1,250,000 Gross profit 600,000 150,000 750,000 Selling and administrative 250,000 180,000 430,000 expense Net income $350,000 $(30,000) $320,000 68169 youjou www.www Cost of goods sold 900,000 350,000 1,250,000 Gross profit 600,000 150,000 750,000 Selling and administrative 250,000 180,000 430,000 expense Net income $350,000 $(30,000) $320,000 In the Consumer Division, 70% of the cost of goods sold are variable costs and 35% of selling and administrative expenses are variable costs. The management of the company feels it can save variable cost and $45,000 of fixed cost of goods sold and $50,000 of fixed selling expenses if it discontinues operation of the Consumer Division. Using the incremental analysis, which of the following decisions is the best for the company? OA Eliminate the Consumer Division; incremental profit decreases by $55,000 OB. Eliminate the Consumer Division; incremental profit increases by $55,000 Oc. D. Continue the Consumer Division; incremental profit increases by $97,000 Continue the Consumer Division; incremental profit decreases by $97,000 Moving to the next question prevents changes to this answer Question 24 of 25