Question 7 Company has two divisions whose most recent financial information is below. Company is considering eliminating Division 1 Division 1 50,000 30,000 Division 2 400,000 175,000 Total 450,000 205,000 87,500 47,000 16,500 Sales Variable Material Costs Allocated Corporate Fixed Variable Labor Costs Division Specific Fixed Costs 75,000 12,500 7,000 40,000 4,000 12,500 A. If Company K decides to keep Division 1, what is the total net income reported by Company K? B. If Company decides to eliminate Division 1. what is the total net income reported by Company K? C. Should Company Keliminate Division 1? Why? D. What is the minimum sales revenue that Division 1 must earn if it is NOT to be eliminated? ride