Aristide Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2020 follows: (Click to view the results of each division.) Closing down any division would result in savings of 50% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year. Read the requirements. Requirement 1. Calculate the increase or decrease in operating income if Aristide closes division A. Would operating income increase or decrease? decrease By how much? $30,800 Does Division A's contribution margin cover its avoidable fixed costs? Yes Requirement 2. Calculate the increase or decrease in operating income if Aristide closes division B. Would o

Aristide Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2020 follows: (Click to view the results of each division.) Closing down any division would result in savings of 50% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year. Read the Requirement 1. Calculate the increase or decrease in operating income if Aristide closes division A. Requirement 2. Calculate the increase or decrease in operating income if Aristide closes division B. Data table Further analysis of costs reveals the following percentages of variable costs in each division: Requirements 1. Calculate the increase or decrease in operating income if Aristide closes division A. 2. Calculate the increase or decrease in operating income if Aristide closes division B. 3. What other factors should the top management of Aristide consider before making a decision