Milwaukee, Inc. has three divisions: Bud, Wise, and Er. The results of May, 2022 are presented below.

		Bud		Wise					Er			Total
Units sold		3,000			5,000				2,000			10,000
Revenue		$70,000		$	50,000			$	40,000		$	160,000
Less variable costs		32,000			26,000				16,000			74,000
Less direct fixed costs		14,000			19,000				12,000			45,000
Less allocated fixed costs		6,000			10,000				4,000			20,000
Net income		$18,000		$	(5,000	)		$	8,000		$	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 if the division is closed, that sales at the Bud division 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		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Less variable costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
Less direct fixed costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
Less allocated fixed costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
Net income		$enter total amount		$enter total amount		$enter total amount

Should Milwaukee close the Wise division? select an option YesNo