2 Kari Ahmed a recent graduate of an accounting program evaluated the operating pertamance of Lunar Company's boue diens Kam Aed made the towing presentation board of directors and suggested the Fifa Don be eliminated the Rua Division is amanated she said our stal profits would we by "$20,000" The Other Four Ritta Divisions Division Sales $1,600,000 $110.000 Cost of goods sold Gross prof Operating expenses Net income 950.000 80,000 650.000 30.000 1 500.000 50,000 $150,000 ($20,000) In the Riffa Division, cost of goods sold is $65,000 variable and $15,000 fixed, and operating expenses are $40.000 variable and $10,000 fixed. None of the Riffa Division's fixed costs will be elminated if the division is discontinued Required: (1) Prepare an incremental analysis to eliminate or keep a division decision (5 marks) (2) Is Karim Ahmed right about eliminating the Riffa Division? Why or why not? (15 marks) For the toolbar, pres ALT+F10(PC) or ALT+F10 (Mac BI V & x x 3 Paragraph Arial Y 10pt EYE ALI ta