C 10 The president was told that the fixed expenses of $187,000 included $102,000 that had been split evenly between divisions because they were general corporate expenses. After looking at the statement, the president exclaimed, "I knew it! Division B is a drag on the whole company. Close it down!" Required: a. Evaluate the president's remark. O The president's remark ignores the misleading result of arbitrarily allocated fixed expenses. O The president's remark ignores the misleading result of arbitrarily allocated variable expenses. b. Calculate what the company's net income would be if Division B were closed down. Net income without Division B c. What is the policy statement related to the allocation of fixed expenses. O Never arbitrarily allocate fixed expenses. O Never arbitrarily allocate variable expenses. 1.25 points Skipped eBook Hint Print References