QUESTION 6 PROBLEM B2 Llothes, Inc, expects the following monthly results for the coming year. Hate Shirts Jeans Total Sales $90.000 $110.000 $360,000 5550.000 $50,000 Variable $30,000 $240.000 $100,000 bots Fbead con 60.000 40.000 100.000 200.000 Total costs $110,000 $70,000 $200.000 $140,000 Proht (los) $ (20,000) $ 40,000 $ 90,000 $110,000 Required: Answer each of the following questions independently. A. Suppose that fixed costs, all unavoidable, are allocated based on the floor space sach segment occupies. What will total profits be LeClothes drops the hats segment? (5 points) b. Suppose that $25,000 of the fixed costs shown for the hats segment is avoidable. What will total profits be if LeClothes drops the hats segment? (10 points) G Suppose that LeClothes could avoid $25,000 in fixed costs by dropping the hats segment (as in requirement b). However the managers believe that if they do drop hats, sales of each of the other lines will fall by 10% What will profits be if LeClothes drops hats and loses 10% of the sales of each of the other segments? (10 points)