Problem 2 (20 points total) Shown below are the most recent financial statements for the Kogan Companty Commercial Division Residential Division 2,000 $200,000 Unit sales Sales Less: cost of goods sold: DGS Direct costs (material and labor) Depreciation production equipment Gross margin Less: operating expenses: Sales commissions Allocated corporate facility costs (fixed) Net income (loss) sl $ 8l 10,000 S800,000 120,000 L 50,000 $ 30,000 350,000 150,000 $300,000 20,000 15,000 SGA 80,000 25,000 (S 5.000) $195,000 1. Compute the impact on profit if Kogan can achieve a 10% increase in unit sales in the Residential Division with no impact on selling price. [5 points) 2,c00x .1e2, 200 220c00 Salks 2. Compute the impact on profit if Kogan can achieve a 10% increase in selling price in the Residential Division with no impact on sales volume. [5 points] Form 1 Compute the impact on profit if the Residential Division is eliminated. (5 points 4. Which of the above three options would you recommend and why? [5 points] Form 1