Question 2 Modern Company has four divisions. The budgeted revenues and expenses for each division for 2021 follows: Sales Cost of goods sold Selling & admin costs Operating income (loss). Division B $504,000 $948,000 $960,000 440,000 930.000 765,000 96,000 202,500 144,000 $(32,000 $(184,500) $51,000 D $1,240,000 925,000 210,000 $105,000 Further analysis of costs reveals the following percentages of variable costs in each division: A B D Cost of goods sold 90% 80% 90% 85% Selling & admin costs 50% 50% 60% 60% Closing down any division would result in a savings of 40% of the fixed costs of that division Required: 1. Calculate the increase or decrease in operating income if Modern Company closes division B using the below table: A/B/C/D A/B/C (Drop B Sales revenue 3.688.000 2.704,000 Vaale.O.GS 46:00:09 2614175027241000