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Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's four divisions Karim Ahmed made the following presentatic eliminated

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Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's four divisions Karim Ahmed made the following presentatic eliminated "If the Riffa Division is eliminated," she said, "our total profits would increase by "$20,000 The Other Four Riffal Divisions Sales $1,000,000 Cost of goods sold 950,000 Gross profit 650,000 Operating expenses 500,000 Net income $150,000 Division $110,000 80,000 30,000 50,000 ($20,000) in the Fitta Division, cost of goods sold is $65.000 variable and $15.000 Sixed and operating expenses are $40,000 variable and $10,000 txed. None of the Rifa Division's foxed costs will be eliminated if the division is de Required: (1) Prepare an incremental analysis to eliminate or keep a division decision mak (2) is Karm Ahmed right about eliminating the Riffa Division? Why or why not? (15) For the other press ALT-10(PC) or ALTF10Ma

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