Lenox Manufacturing Co. produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and sells heavy equipment, Division B, which manufactures and sells hand tools, and Division C, which makes and sells electric motors. Each division is housed in a separate manufacturing facility. Company headquarters is located in a separate building. In recent years, Division B has been operating at a net loss and is expected to continue to do so. Income statements for the three divisions for 2016 follow Division A Division B Division C 300,e00 $1,25e,eee SaleS $1,ee0,eee Less: Cost of goods sold Unit-level manufacturing costs Rent on manufacturing facility (6ee,ee0) 135,000 265,e00 (200,eee) 75,000) 25,000 (750,e00) 100,006 400,000 Gross margin Less: Operating expenses Unit-level selling and admin. expenses (14,e00) (20,000) 50,000 $ 72,500 $ (59,e0e) (62,5e0) (8e,000) 50,000 (78,000) (100,000) 50,000 172,e00 Division-level fixed selling and admin. expenses Headquarters facility-level costs Net income (loss) Required a-1. Based on the preceding information, recommend whether to eliminate Division B a-2. Prepare company wide income statements before and after eliminating Division B b. During 2017, Division B produced and sold 20,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 30,0o00 units in 2018? c. Suppose that Lenox could sublease Division B's manufacturing facility for $160,000, at a production and sales volume of 30,000 units. Calculate the contribution to profit of Division B Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required BRequired C Suppose that Lenox could sublease Division B's manufacturing facility for $160,000, at a production and sales volume of 30,000 units. Calculate the contribution to profit of Division B. (Negative amounts should be indicated by a minus sign.) Contribution to profit (loss) Should Division B be eliminated? Yes Required B Required C