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need help with this homework Check my work 10 PA7-5 (Static) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5] 5 Ben Blum recently graduated from Moonshadow University's

need help with this homework

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Check my work 10 PA7-5 (Static) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5] 5 Ben Blum recently graduated from Moonshadow University's accounting program. He has been hired as an analyst by Primrose Tire points Company and one of his first assigned tasks was to evaluate the North East division of Primrose. This division has been heavily focused on producing a special snow and mud tire. Sales of the special tire have been disappointing and management is now evaluating whether to eliminate the North East division. Ben performed the following analysis and is preparing to address the Board of eBook Directors of Primrose with his recommendation that the North East division should be eliminated, resulting in an increase to total company profit of $49,000. Print All Other North References Divisions East Total Sales Revenue $3, 328, 400 $200,000 $3, 528, 400 Cost of goods sold 1, 957, 040 153,000 2, 110, 040 Gross profit $1, 371, 360 $ 47,000 $1, 418,360 Operating expenses 1, 055, 880 96,000 1, 151, 880 Net operating income (loss) $ 315, 480 $ (49, 000) $ 266, 480 The North East division's cost of goods sold includes $33,000 in fixed costs and operating expenses include $46,000 in fixed costs. None of the fixed costs will be eliminated if the North East division is discontinued. Required: Compute the contribution margin lost by the division. (Loss amounts should be indicated by a minus sign.) Elimination of North East Lost sales revenue Less: avoidable variable expenses Lost contribution margin Mc Prev 10 of 20 Next

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