QUESTION 9 Leia plc is assessing the financial impact of shutting down one of its loss making divisions. The divisional P&L, together with notes on the relevance of each cost item, is presented below: Sales 90,000 Variable costs (60,000) Contribution Staff salaries 30,000 (15,000) All staff would be relocated elsewhere in the business on the same salary Insurance costs This is an allocation of the total insurance premium for the company as a whole. The (12,000) insurance company has indicated that it would not be prepared to reduce the cost of the premium based on the closure of one division Allocated from head office. If the division were closed, the marketing team could be redeployed onto a new project earning 5,000 contribution per year Marketing services Profit (20,000) (17,000) According to relevant costing analysis, what would be the impact on Leia of shutting down the division?