I am having problems with the last question in my assignment. I have attached a document of the question. Any help or hints on getting started will be helpful.

P11-34 Segment Reporting and Analysis University Publishers, Inc., has prepared income statements segmented by divisions, but management is still uncertain about actual perfromance. Financial information for May is given as follows: Textbook Devision Professional Devision Company Total Sales $200,000 $410,000 $610,000 Less variable expenses Manufacturing 32,000 205,000 237,000 Selling and admistrative 4,000 20,500 24,500 Total $(36,000.00) $(225,500.00) $(261,500.00) Contribution margin 164,000 184,500 348,500 Less direct fixed expenses $(15,000.00) $(205,000.00) $(220,000.00) Net Income $149,000.00 $(20,500.00) $128,500.00 Management is concerned about the Professional Division and request additional analysis. Additional information regarding May opertions of the Professional Division is as follows: Sales Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Accouting Executive Mangement $14,000 $140,000 $130,000 60% 40% 50% 5% 5% 5% $50,000 $5,000 $75,000 $2,000 $50,000 $7,000 The professional accounting books are sold to auditors and controllers. The current information on thses markets is as follows: Sales Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Sales Market Auditors Controllers $30,000 $110,000 60% 60% 16% 2% $10,000 $4,000 $25,000 $8,000 Required: a. Prepare an income statement segmented by product for the Professional Division. Include a collumn for the division as a whole. b. Prepare an income statement segmented by market for the accounting books of the Professional Division. c. Evaluate which accounting books the Professional Division should keep or discontinue in the short run. d. What is the correct long-run decision? Explain fully, including any possible risk associated with your recommendation. Assume that United technology is evaluating a proposal to change the companys manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000. The estimated life of this system is five years with no salvage value. The tax rate is 40 percent, and United Technologies uses straight-line depreciation for tax purposes. United Technologies has cost of capital of 16 percent. Required: a. Compute the annual after- tax cash flows related to the CAD project. b. Compute each of the following for the project: 1. Payback period 2. Net present value