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3A. GoingUnder Pvt. Ltd. provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the GL

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3A. GoingUnder Pvt. Ltd. provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the GL area because it is showing a pre-tax loss. An annual Income statement follows (in $000): SALES VARIABLE MANUFACTURING COSTS VARIABLE NON-MANUFACTURING COSTS DEPARTMENT FIXED COSTS (AVOIDABLE) ALLOCATED FIXED COSTS (UNAVOIDABLE) OPERATING PROFITS PAYROLL GL TAX $5.500 $3,900 $4,390 ($1,678) ($1,245) ($1,597) ($599) ($1,400) ($486) ($1,399) ($1,300) ($1,570) ($378) ($500) ($299) $1,446 ($545) $438 If corporate management drops the GL area, what impact would this have on total operating profit? (Give actual dollar impact on profit; yeso" answers are not acceptable)

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