Required: a. Compute the impact on profit if the Residential Division is eliminated

Division Division Unit sales $406, ooo $106, Less: cost of goods sold: Unit-level production costs 175, 600 60, Depreciation, production equipment 78, 00 28, ooo Gross margin $152, 400 $17 , Less: operating expenses: Unit-level selling and administrative 40, 600 10, Corporate-level facility costs (fixed) 15, 500 10, 500 $96, 300 $(3, 700) Net income (loss) Required: 5, 120 a. Compute the impact on profit if the Residential Division is eliminated. ommercl Division Unit sales Less: cost of goods sold: Unit-level production costs Depreciation, production equipment Gross margin Less: operating expenses: Unit-level selling and administrative Corporate-level facility costs (fixed) Net income (loss) 1, 120