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George Ltd. has three divisions. A segmented income statement follows: Division A Division B Division C Total Sales revenue $30,720 $4,440 $7,200 $42,360 Variable costs

George Ltd. has three divisions. A segmented income statement follows: Division A Division B Division C Total Sales revenue $30,720 $4,440 $7,200 $42,360 Variable costs $26.760 $1,080 $5,400 $33,240 Contribution margin $3,960 $3,360 $1,800 $9,120 Less direct fixed expenses $0 Depreciation $1,200 $360 $240 $1,800 Salaries $2.280 $2,040 $1,920 $6,240 Segment margin $480 $960 -$360- $1,080 Direct fixed expenses are depreciation and salaries. All depreciation on the equipment is dedicated to the divisions and none of the equipment can be sold. Also, each of the three divisions has a different supervisor whose position would remain and be reassigned if the division was closed. Using the above information answer the following questions. Should George Ltd. discontinue Division C? Enter the letter A for YES. Enter the letter B for NO. I A/ Would operating income increase or decrease if Division C was dropped? Enter the letter A for increase. Enter the letter B for decrease. By how much will operating income increase or decrease by if Division C was dropped? Enter your answer as a positive number even if operating income would decrease

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