PART 5 (20 minutes) Rushdi Amer, president of a publishing company, is analyzing the firm's financial statements for the past year. The firm publishes magazines weekly, monthly, and quarterly. Data for the past year are as follows: Quarterly Magazine Monthly Weekly Total Magazine Magazine Sales $175,000 $100,000 $200,000 $475,000 Variable costs 70,000 45,000 80,000 195,000 8,750 7,500 11,250 27,500 Depreciation of special equipment Salary of editor 20,000 20,000 22,500 62,500 61,250 43,750 70,000 175,000 Common costs allocated (based on sales) Net income (loss) $15,000 $(16,250) $ 16,250 $ 15,000 The equipment used is very specialized and has no resale value if its use is discontinued. Amer is considering discontinuing the monthly magazine because he claims it is decreasing the company's profitability. Required Should the quarterly magazine be discontinued? Support your answer with the necessary calculations