Question 23 of 23 -/18 View Policies Current Attempt in Progress Trump Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the do-ityourselt homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December 31, 2019 are presented below Sales Cost of goods sold Gross profit Selling & administrative experies Net income Timber Division $ 1.500.000 900,000 600.000 250,000 $ 350.000 Consumer Division $ 500,000 350,000 150.000 180,000 5 (30,000) Total $ 2.000.000 1.250,000 750.000 430,000 $ 320,000 In the Consumer Division, 70% of the cost of foods sold are variable costs and 35% of selling and administrative expenses are Variable costs. The management of the company feels it can save $45.000 of foxed cost of goods sold and $50.000 of foed selling pemes if it discontinues operation of the Consumer Division Type here to wach O RI 9 DELL EZ FB FYO @ % 5 2 3 8 7 4 6 W E R S D F G H Z v B N