Question 2 {16 points} The Great Outdoors Company has 2 divisions with the following financial information: Division A Division B Contribution margin $1,54T,500 $1,243,?50 Operating Costs Administrative salaries 350,000 220,000 Selling salaries 250,000 000,000 Supplies 125,000 185,300 Depreciation of equipment 68,000 145,000 Delivery costs 68,000 52,000 Allocated corporate overhead ,@ ,@ Total operating costs , l, Operating income {loss} 5%, ;$, There is no resale value on the equipment. The selling salaries, supplies, and delivery costs are available with respect to the sales generated. Required Part A 1. lfthe Division B is discontinued, one administrative position could be eliminated, saving the company $105,000. Assuming no change in Division A's sales, what effect would dropping Division B have on the company's operating income\"? Prepare an incremental analysis to determine the impact on operating income. 2. Based on your analysis conclude on whether the Division B should be discontinued. Part B 1. Refer back to the original data. If Division El is dropped, it is estimated that Division A's sales would increase by 50%. The president believes that the administrative position could still be eliminated, saving the company $105,000. Equipment currently used by Division B would be used by Division A for the extra sales. Should Division B be discontinued? Prepare a total analysis to determine the impact on operating income. 2. Based on your analysis conclude on whether Division B should be discontinued