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Karen Anmed, a recent grade of an accounting program, evaluated the operating pedom of t board directors and suggested the Ria Division be aminated the

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Karen Anmed, a recent grade of an accounting program, evaluated the operating pedom of t board directors and suggested the Ria Division be aminated the Fita Division is the sed urotal profe would increase by 120,000 The Other Four Ritta Divisions Division $1,000,000 $110.000 Cost of goods sold 950,000 80,000 Gross profit 650,000 30,000 Operating expenses 500,000 50,000 Net income $150,000 ($20,000) In the Riffa Division, cost of goods sold is $65.000 variable and $15,000 fixed, and operating expenses are $40.000 variable and $10,000 foxed. None of the Rita Division's flaed costs will be eliminated if the division is discontinued Required: (1) Prepare an incremental analysis to eliminate or keep a division decision marks) (2) Is Karim Ahmed right about eliminating the Riffa Division? Why or why not? (1.5 marks) for the toolbar, press ALT-10 (PC) or ALT-FN-F10 (Mac

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