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King Company has two divisions whose most recent financial statements are shown below: table [ [ , table [ [ Commercial ] ,

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King Company has two divisions whose most recent financial statements are shown below:
\table[[,\table[[Commercial],[Division]],\table[[Residential],[Division]]],[Unit sales,5,400,1,400],[Sales,$420,000,$120,000],[Less: cost of goods sold:,,],[Unit-level production costs,177,000,62,000],[Depreciation, production equipment,85,000,35,000],[Gross margin,$158,000,$23,000],[Less: operating expenses:,,],[Unit-level selling and administrative,42,000,12,000],[Corporate-level facility costs (fixed),22,500,17,500],[Net income (loss),$93,500,$(6,500)]]
Required:
a. Compute the impact on profit if the Residential Division is eliminated.
\table[[Unit sales,\table[[Commercial],[Division],[Sales]]],[Less: cost of goods sold:,],[Unit-level production costs,],[Depreciation, production equipment,],[Gross margin,],[Less: operating expenses:,],[Unit-level selling and administrative,],[Corporate-level facility costs (fixed),],[Net income (loss),]]
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