Closing down any division would result in saving of 60 percent 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

Sales A 650,000 B 420000 C 900000 D 700,000

cost of goods 490,000 340000 560000 450000

seling general , and administrative expenses 160,000 90000 225000 235000

operating income/loss (25000) (10000) 115000 15000

cost of goods sold 86 percent 92 percent 85 percent 76 percent

selling ,general, and aministrative expenses 63 percent 76 percent 70 percent 65 percent

Calculate the increase or decrease in operating income if partyka closing A

Calculate the increase or decrease in operating income if partyka closes B

What other factors should the top management of partyka consider before making a decision