3. Belmont Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2011 are as follows: DIVISION A $630,000 550,000 Sales Cost of goods sold Selling, general, and admin. expenses Operating income/loss B D $ 632,000 $960,000 $1,240.000 620,000 765,000 925,000 135,000 144,000 210,000 S(123,000) $51,000 $105,000 120,000 $(40,000) 90% 50% 80% 90% 50% 60% 85% 60% Further analysis of costs reveals the following percentages of variable costs in each division: Cost of goods sold Selling general, and administrative expenses Closing down any division would result in savings of 40% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year. Required: a. Calculate the increase or decrease in operating income if Belmont closes Division A. (15 pts) b. Calculate the increase or decrease in operating income if Belmont closes Division B. (15 pts) W