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costs Question of 15 Question 9 1 points Lela plc is assessing the financial impact of shutting down one of its loss making divisions. The divisional P&L, together with notes on the relevance of each cost item, is presented below: Sales 90,000 Variable (60,000) Contribution 30,000 Staff salaries (10,000) All staff would be rescated elsewhere in the business on the same salary Insurance This is an allocation of the total insurance premium for the company as a whole. The insurance company has indicated that it would not be (12,000) prepared to reduce the cost of the premium by 2,000 for the business as a whole based on the closure of one division Depreciation (20,000) Profit (12,000) According to relevant costing analysis, what would be the impact on Leta of shutting down the division? a. 28,000 cost costs b.12,000 cost c12,000 benefit O d. 30,000 cost