*** ENGLISH VERSION OF THE QUESTION IS BELOW ***

10) Laviolette possde deux divisions A et B. Les dirigeants sont mcontents de la performance de la division B et envisagent srieusement sa fermeture. On vous a fourni les donnes suivantes au 31 dcembre 2021:

	Division A	Division B	Total
Ventes	$500,000	$400,000	$900,000
CMV	110,000	300,000	410,000
Bnfice brut	390,000	100,000	490,000
Frais d'exploitation	100,000	220,000	320,000
Bnfice net	$ 290,000	$(120,000)	$ 170,000

Dans la division B, 70% du CMV est variable et 30% des frais d'exploitation sont des cots variables. En cas d'limination de la division B, la direction estime que $40,000 du cot fixe de CMV et 40,000 $ des frais d'exploitation fixes seront conomiss.

Devrait-on liminer la division B?

Options de la question 10 :

A) Non, l'effet de son limination diminuera les bnfices totaux de 200 000$.

B) Non, l'effet de son limination diminuera les bnfices totaux de 44 000 $.

C) Oui, l'effet de son limination augmentera les bnfices totaux de 44 000 $.

D) Oui, l'effet de son limination augmentera les bnfices totaux de 200 000$.

Prire de dmontrer votre dmarche tape par tape. Veuillez noter que la question est une question choix multiple qui devrait prendre que quelques minutes.Votre aide sera grandement apprcie

ENGLISH

12) Laviolette has two divisions, A and B. Management is unhappy with the performance of Division B and is seriously considering its closure. You have been provided with the following data as of December 31, 2021:

	Division A	Division B	Total
SALES	$500,000	$400,000	$900,000
COST OF GOODS SOLD	110,000	300,000	410,000
GROSS PROFIT	390,000	100,000	490,000
Operating expenses	100,000	220,000	320,000
Net income	$ 290,000	$(120,000)	$ 170,000

In Division B, 70% of the cost of goods sold is variable and 30% of operating expenses are variable costs. If Division B is eliminated, management estimates that $40,000 of the fixed cost of goods sold and $40,000 of the fixed operating costs will be saved.

Should Division B be eliminated?

Options for question 10 :

A) No, the effect of eliminating it will decrease total profits by $200,000.

B) No, the effect of eliminating it will decrease total profits by $44,000.

C) Yes, the effect of its elimination will increase total profits by $44,000.

D) Yes, the effect of its elimination will increase total profits by $200,000.

Please demonstrate your approach step by step. Please also note that this is a multiple-choice question that should only take few minutes.Your help in this is greatly appreciated