DigitalHall operates three divisions within the same building, namely, Print, Video and Sound. The following information has been obtained from DigitalHall:

Division	Print	Video	Sound
Sales (RM)	162,000	270,000	216,000
Direct VC (RM)	97,200	135,000	108,000
Direct FC (RM)	27,000	37,800	54,000

The common costs of RM160, 000 are allocated across all three divisions, based on divisional sales.

Required:

1. Prepare a divisional performance report.
2. Sarah, the manager of the Video division, suggests that the Print division should be closed, because this division is making losses. Kim, the manager of the Print division, indicates that DigitHall will have lower overall profits if the Print division is closed, unless certain steps are put in place. Kim knows that the Print division needs to be downsized because print media is becoming less popular, rather than closed, to serve some regular customers who are dependent on this division. In addition, alternative actions should be pursued to protect overall profit, and she wants to oversee this process. Patricia, the general manager, suggests that Kim should prepare a brief report explaining why overall profits would drop and suggest two strategies that DigitalHall could pursue to prevent a drop in overall profits. You are interning at DigitalHall, and Kim asks for your help in preparing this report.

Required:

Prepare a brief report for Kim that she could present to Patricia.

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(15 + 6 = 21 marks)