please, explain the process.

3. Harley Davidson Weyerhaeuser Co. 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, 2018 are presented below: Sales Cost of goods sold Gross profit Selling & administrative expenses Net income Timber Division. Consumer Division Total $500,000 350,000 150,000 180,000 S (30,000) $1,500,000 900.000 600,000 250.000 $ 350,000 $2,000,000 1,250,000 750,000 430.000 S 320.000 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 $45,000 of fixed cost of goods sold and $50,000 of fixed selling expenses if it discontinues operation of the Consumer Division. Instructions (a) Determine whether the company should discontinue operating the Consumer Division. (b) If the company had discontinued the division for 2018, determine what net income would have been