ProbContinue or discontinue a segment? MMV inc. opened a chain of businesses several years lem ago that provide quick oll changes and other minor services in conjunction with a convenience 16.3 operation consisting of a soup, sandwich, and snack bat. The strategy was that as customers brought autos in for oil changes, they would likely use the corvenience operation to purchase a sandwich, bowl of soup, beverage, or some other snack while they were waiting for the work to L0.16- be completed on their autos. The oil change operation occupies 75% of the tacility and includes 2. 16-3 three service bays. The soup, sandwich, and snack bar cocuples the remaining 25\%. A general manager is responsible for the entire operation, but each segment also has a manager responsible for its individual operation. While investigating these operating expenses, MMV, Ine. determines the following: - Utilies are allocated to each segment based on square footage: however, 50% of the amount alocated to the soup. sandwich, and snack bar results from operating the focd equipment. - The general manager's salary is allocated between the segments based on estimated time spent with each operation. If is determined that 20% of the general manager's time is spent with the convenience operation. - Advertsing is allocated to each segment equally but could be reduced by $3,000 if MMV decided to advertise only the aulo services. - Insurance is allocated to each segment based on square tootage, but orly 25% of the amount alocated to the soup, sandwich, and snack bar results directly from its operation. - Property taxes and building depreciation are allocated to each segment based on square footage. Required: a. From the preceding information, calculate the eperating income from the soup, sandwich. and snack bar operation that has caught the general manager's attention. b. Identify whether each of these operating expenses is relevant to the decision of discontinuing the soup, sandwich, and snack bar operation. c. If NOMV discontinues the soup, sandvich, and snack bar operation, how much will operating income increase or decrease for this location? d. Should MMV continue or discontinue the soup, sandwich, and snack bar operation at this location? Consider possible opportunities for the use of this space in your response