Blossom, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,700 9,500 3,800 19,000 Revenue $133,000 $95,000 $76,000 $304,000 Less variable costs 60,800 49,400 30,400 140,600 Less direct fixed costs 26,600 36,100 22,800 85,500 Less allocated fixed costs 11,400 19,000 7,600 38,000 Net income $34,200 $(9,500) $15,200 $39,900 All of the allocated costs will continue even if a division is discontinued. Blossom allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Blossom is concerned that it should be discontinued. Blossom thinks that if the division is closed, that sales at the Bud division will increase by 129% while sales at the Er division will stay the same. (a) Your answer is partially correct. Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to O decimal places, e.g. 1,525.) Bud Er Total Revenue 24 148960 76000 24 2245 Less variable costs 68096 30400 98496 Less direct fixed costs 26600 22800 49400 Less allocated fixed costs 38000 14179 521 Net income 16264 %24 8621 248

Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to O decimal places, e.g. 1,525.) Bud Er Total Revenue $ $ $ Less variable costs Less direct fixed costs Less allocated fixed costs Net income to $ $ Should Blossom close the Wise division?Blossom, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,700 9,500 3,800 19,000 Revenue $133,000 $95,000 $76,000 $304,000 Less variable costs 60,800 49,400 30,400 140,600 Less direct xed costs 26,600 36,100 22,800 85,500 Less allocated xed costs 11,400 19,000 7,600 38,000 Net income $34,200 $(9,500) $15,200 $39,900 All of the allocated costs will continue even if a division is discontinued. Blossom allocates indirect xed costs based on the number of units to be sold. Since the Wise division has a net loss, Blossom is concerned that it should be discontinued. Blossom thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same