Para en Question 3 (30 marks) A-ABC Corporation has two divisions--Women and Men. The divisions have the following revenues and expenses Women Men Sales $ 100,000 s 110,000 Variable costs 40,000 57,000 Traceable fixed costs 30,000 36,000 Allocated common corporate costs 27,000 34,000 Net income (loss) $3,000 S (17,000) The management of ABC is considering the elimination of the Men Division. If the Men Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision Required: 1. Should the Company drop Men division? Explain in light of the effect of your decision on the company profitability. (Support you answer with the cessary calculations) 2. Will your decision be changed if you know that all traceable fixed costs to Men division could be avoided and 40% of total common corporate costs assigned to Men division would be unaffected by this decision. (Support you answer with the recessary calculations). (12 marks) B ABC Corporation in a manufacturing Company. The following information concerns operations for 2021 1. The company's single product sells for S8 per unit Budgeted unit sales for the next four quarters are as follows (all sales are on credit: Quarter Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 40.000 60.000 100.000 50,000 2. Sales are collected in the following pattem: 70% in the quarter the sales are made, and the remaining 30% in the following quarter On January 1, 2021, the company's balance sheet showed $75,000 in accounts receivable all of which will be collected in the first quarter of the year. Bad debts are