Problem 3 Emir Corporation has four operating divisions. The budgeted revenues and expenses for for 2017 follows Division 30,000 632,000 $0,000 $1240,000 620,000 765,000 Sales Cost of goods sold Selling, general, and administrative expenses Operating incomeloss 925,000 550,000 -120,099 21 000 210,000 1 99 Further analysis of costs reveals the following percentages of variable costs in each division: 90% 60% 85% 60% 80% Cost of goods sold Selling, general, and administrative expenses 90% 50% 50% down any division would result in savings of 40% of the fixed costs of that division. Top management is very concermed about the unprofitable divisions (A and B) and is considering closing them for the year Homework Look "problem 3", what if Emir Corporation has a big debt to Fi Corp and is currently considering selling the peofitable divisions (C and D) to Fiona 1. Cakulate the increase or decrease in operating income if Emir closes division C 2 Calculate the increase or decrease in operating income if Emir closes division D