Perez Manufacturing Company produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and sells heavy equipment; Division B, which manufactures and sells hand tools; and Division C, which makes and sells electric motors. Each division is housed in a separate manufacturing facility. Company headquarters is located in a separate building. In recent years, Division B has been operating at a net loss and is expected to continue to do so. Income statements for the three divisions for Year 2 follow. Required a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare company-wide income statements before and after eliminating Division B. b. During Year 2, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 37,000 units in Year 3. Should Division B be eliminated? c. Suppose that Perez could sublease Division B's manufacturing facility for $415,000 or operate Division B at a production and sales volume of 37,000 units. Determine Division B's contribution margin at that level. Based on your determination, would you operate Division B or close it? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Suppose that Perez could sublease Division B's manufacturing facility for $415,000 or operate Division B at a production and sales volume of 37,000 units. Determine Division B's contribution margin at that level. Based on your determination, would you operate Division B or close it? Note: Negative amount should be indicated by a minus sign. Perez Manufacturing Company produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and sells heavy equipment; Division B, which manufactures and sells hand tools; and Division C, which makes and sells electric motors. Each division is housed in a separate manufacturing facility. Company headquarters is located in a separate building. In recent years, Division B has been operating at a net loss and is expected to continue to do so. Income statements for the three divisions for Year 2 follow. Required a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare company-wide income statements before and after eliminating Division B. b. During Year 2, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 37,000 units in Year 3. Should Division B be eliminated? c. Suppose that Perez could sublease Division B's manufacturing facility for $415,000 or operate Division B at a production and sales volume of 37,000 units. Determine Division B's contribution margin at that level. Based on your determination, would you operate Division B or close it? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. During Year 2, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 37,000 units in Year 3. Note: Do not round intermediate calculation. Contribution to profit (loss) Should Division B be eliminated? Perez Manufacturing Company produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and sells heavy equipment; Division B, which manufactures and sells hand tools; and Division C, which makes and sells electric motors. Each division is housed in a separate manufacturing facility. Company headquarters is located in a separate building. In recent years, Division B has been operating at a net loss and is expected to continue to do so. Income statements for the three divisions for Year 2 follow. Required a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare company-wide income statements before and after eliminating Division B. b. During Year 2, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 37,000 units in Year 3. Should Division B be eliminated? c. Suppose that Perez could sublease Division B's manufacturing facility for $415,000 or operate Division B at a production and sales volume of 37,000 units. Determine Division B's contribution margin at that level. Based on your determination, would you operate Division B or close it? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare company-wide income statements before and after eliminating Division B. Perez Manufacturing Company produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and sells heavy equipment; Division B, which manufactures and sells hand tools; and Division C, which makes and sells electric motors. Each division is housed in a separate manufacturing facility. Company headquarters is located in a separate building. In recent years, Division B has been operating at a net loss and is expected to continue to do so. Income statements for the three divisions for Year 2 follow. Required a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare company-wide income statements before and after eliminating Division B. b. During Year 2, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 37,000 units in Year 3. Should Division B be eliminated? c. Suppose that Perez could sublease Division B's manufacturing facility for $415,000 or operate Division B at a production and sales volume of 37,000 units. Determine Division B's contribution margin at that level. Based on your determination, would you operate Division B or close it? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Based on the preceding information, recommend whether to eliminate Division B. Note: Negative amount should be indicated by a minus sign