A recent accounting graduate from SFU evaluated the operating performance of IGibco Company's three divisions. The following presentation was made to management where she recommended eliminating the Western Division because net income would increase by $25,000, as shown in the analysis below. North and South Divisions Western Division ital Sales $1,000,000 $290,000 $1,290,000 Cost of Goods Sold l j, 845% Gross Prot 350,000 95,000 445,000 Operating Expenses l gh 220, Net Income $,@ $_[_5,Ml $ 225 w Cost of goods sold is 60% variable and operating expenses are 65% variable. If the Western division is eliminated, 30% of the xed costs in COGS and operating expenses related to the Western division will be eliminated. Instructions