Oriole Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the do-it- yourself homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December 31, 2022 are presented below: Timber Division Consumer Division Total Sales $1,320,000 $440,000 $1,760,000 Cost of goods sold 792,000 308,000 1,100,000 Gross profit 528,000 132,000 660,000 Selling & administrative expenses 55,440 158,400 213,840 Net income $472,560 $(85,360) $387,200 In the Consumer Division, 70% of the cost of goods sold are variable costs and 35% of selling and administrative expenses are variable costs. The management of the company feels it can save $39,600 of fixed cost of goods sold and $44,000 of fixed selling expenses if it discontinues operation of the Consumer Division.