Oriole, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 3,600 6,000 2,400 12,000 Revenue $84,000 $60,000 $48,000 $192,000 Less variable costs 38,400 31,200 19,200 88,800 Less direct fixed costs 16,800 22,800 14,400 54,000 Less allocated fixed costs. 7,200 12,000 4,800 24,000 Net income $21,600 $(6,000) $9,600 $25,200 All of the allocated costs will continue even if a division is discontinued. Oriole allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Oriole is concerned that it should be discontinued. Oriole thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same.