LOUILO 11 View Polkies Current Attempt in Progress Milwaukee, Inc. has three divisions: Bud Wise, and Er. The results of May, 2022 are presented below. Units sold Revenue Less variable costs Less direct fixed costs Less allocated foved costs Net Income Bud 3.000 $70,000 32.000 14.000 6.000 $18,000 Wise 5.000 $ 50,000 26,000 19.000 10,000 $15.000 Er 2.000 $ 40,000 16,000 12.000 4,000 $ 8,000 Total 10,000 $ 160,000 74.000 45,000 20.000 $ 21.000 All of the allocated costs will continue even if a division is discontinued. Milwaukee allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Milwaukee feels that it should be discontinued. Milwaukee feels i the division is closed that sales at the Buddivision will increase by 12% and that sales at the Er division will stay the same. Prepare an analysis showing the effect of discontinuing the Wise division Bud Er Total Revenue Less variable costs Less direct fred costs Less allocated fed costs Net income 5 Should Milwaukee close the Wise division