Milwaukee, Inc. has three divisions: Bud, Wise, and Er. The results of May, 2016 are presented below Er Total Bud 3,000 ,000 2,000 Wise Units sold $70,000 $50,000 $40,000 $160,000 Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income 32,000 26,000 16,000 74,000 14,000 19,000 12,000 45,000 4,000 20,000 $18,000 (5,000)8,000 21,000 6,000 10,000 will continue even if a division is discontinued. Miliwaukee 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. (a) Prepare an analysis showing the effect of discontinuing the Wise division Bud Total Less direct fixed costs