4. Alpha Corporation is a manufacturing company located in country where the available of the raw materials and labor are readily available. The company has undergone expansion over the years, which has reported substantial return measured in net profit to its shareholders. The company has three major operating divisions, and the results for the three divisions were summarized as follows. Alpha Corporation Product operating Line Income Statement For the Year Ended 31 December, 2018 Descriptions Vacuum Water Coffee Cleaner Dispenser Maker Total Sales $110,000 $200,000 $90,000 $400,000 Traceable costs Direct Material ($50,000) ($80,000) ($60,000) ($190,000) Direct Labor ($20,000) ($14,000) ($10,000) ($44,000) Direct Overhead ($11,000) ($5,000) ($5,000) ($21,000) Non-traceable costs Common Fixed Costs ($24,000) ($40,000) ($16,000) ($80,000) Division Net Income $5,000 $61,000 ($1,000) $65,000 Required: You are asked to prepare a report to address the following matters/concerns that have been raised by the Managing Director of the company. (a) As a going concern, he wishes to evaluate the three divisions in light of growing competition as the economy continues to grow. He has asked you to identify and assess: The product division that is producing negative or loss-making product item and The implications of negative or loss-making product item for financial return and profitability (b) He wishes to make a strategic decision about the long-term viability of this negative return production division; he is required either to continue the production of this production line, or to drop this production line by a complete shutdown. He has asked you to critically evaluate the arguments continue with the existing production line despite it is making a negative net income or return to the company, or to drop this production completely, continue with the other two production lines that are profitable