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Karim Anme a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's tour divisions Karm Ahmed made the following presentation to

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Karim Anme a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's tour divisions Karm Ahmed made the following presentation to the Lunar board of directors and suggested the Riffa Division be elminated. "If the Riffa Division is elmisated," she sad, our total profits would increase by $20,000 The Other Four Riffa Divisions Division Sales $1,000,000 $110,000 Cost of goods sold 950.000 80,000 Gross prof 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 fixed. None of the Ruffa Division's foxed costs will be eliminated the is 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? (1.6 marks) For the toolbar press ALT-F10 (PC) or ALT-FN-F10(Mac

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