4. Keep or Drop an unprofitable segment UMSL Enterprises has 4 divisions. Management is concerned with the performance of the South division. They have asked you to evaluate the following information and advise them if they should eliminate the South Division. North East South West Sales 100,000 250,000 $ 87,000 125,000 CGS (69,000) (175,000) 78,000) (95,000) 30,000 Gross Profit 31,000 75,000 9,000 Selling& AdminExp (8,000) (25,000) (25,000) (16,000) Net Income 13,000 Portion of CGS that is Variable Portion of S&A that is Variable 75% 55% 90% 70% 80% 75% 85% 75% If the South Division is eliminated, all variable costs (associated with South) will go away. Of the fixed costs, (associated with South) 40% can be eliminated. Given this data, should South be eliminated or not? Why? 5. Limited Constraints CCmanu has limited rrsurces and therefore they must decide between two products, Product