Question 3 points Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's tour divisions, Karim Ahmed made the towing present to the Lunar board of directors and suggested the forta Orvision te eliminated. If the Futa Ovision is eliminated" she said, "our total prohis would increase by $20.00 The Other Four Riffa Divisions Division $110,000 Sales $1,000,000 Cost of goods sold 950,000 80,000 Gross profit I 600,000 30,000 Operating expenses 500,000 50,000 Net income $150,000 ($20,000) In the Riffa Division, cost of goods sold is $65,000 variable and $15,000 fixed, and operating expenses are $40,000 variable and $10,000 fixed. None of the Riffs Division's fixed costs will be eliminated if the division is discontinued. Required: (1) Prepare an incremental analysis to eliminate or keep a division decision. (6.5 marks) (2) Is Karim Ahmed right about eliminating the Riffa Division? Why or why not? (1.5 marks)