Mangan Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2020 follows: (Click to view the results of each division.) Closing down any division would result in savings of 50% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year. Data table Division Requirements B C D Sales Cost of goods sold $ 570,000 $ 520,000 90,000 Selling, general, and administrative expenses $ Operating income/loss 470,000 $950,000 $ 380,000 610,000 140,000 240,000 (40,000) $ (50,000) $ 100,000 $ 780,000 460,000 235,000 1. Calculate the increase or decrease in operating income if Mangan closes division A. 2. Calculate the increase or decrease in operating income if Mangan closes division B. 85,000 3. What other factors should the top management of Mangan consider before making a decision? Further analysis of costs reveals the following percentages of variable costs in each division: Division A B C D Cost of goods sold 92 % 90 % 87 % 80 % Print Done Selling, general, and administrative expenses 56 % 75% 68 % 64 % Print Done - X