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Crane, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold

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Crane, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 9,300 15,500 6,200 31,000 Revenue $217,000 $ 155,000 $ 124,000 $496,000 Less variable costs 09.200 80,600 49,600 229,400 Less direct fixed costs 43,400 58,900 37,200 139,500 Less allocated fixed costs 18,600 31,000 12,400 62,000 Net income $55,800 $(15,500) $24,800 $65,100 All of the allocated costs will continue even if a division is discontinued. Crane allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Crane is concerned that it should be discontinued. Crane 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. Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final anibers to 0 decimal places, e.g. 1,525.) Bud Er Revenue $ ta $ Less variable costs Less direct fixed costs Less allocated fixed costs Net income tA $ $ -/15 MII Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to decimal places, eg. 1.525) Bud Er Total $ $ 1 TA $ $ e Textbook and Media Should Crane close the Wise division? Yes No bok and Media Save for Later f 1 used

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