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A- ABC company has two divisions--Women and Men. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate

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A- ABC company has two divisions--Women and Men. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net income (loss) Women $ 500,000 200,000 150,000 135,000 $ 15,000 Men $ 550,000 275,000 180,000 170,000 $ (75,000) The management of ABC is considering the elimination of the Men Division. If the Men Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Required: Should the Company drop Men division? Explain. Support you answer with the necessary calculations. (7.5 marks)

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