Sales Variable costs PART 5 (20 minutes) for the past year. The firm publishes magazines weekly, monthly, and quarterly. Data for the Rushdi Amer, president of a publishing company, is analyzing the firm's financial statements past year are as follows: Weekly Magazine Total $100,000 $200,000 $475,000 Quarterly Magazine Monthly Magazine $ 175,000 Salary of editor Depreciation of special equipment 70,000 45,000 80,000 195,000 8,750 11,250 7,500 27,500 20,000 20,000 22,500 62,500 Common costs allocated (based on sales) 61,250 43,750 70,000 175,000 $15,000 $ (16,250) $16,250 $ 15,000 Net income (loss) The equipment used is very specialized and has no resale value if its use is discontinued. Amer is considering discontinuing the monthly magazine because he claims it is decreasing the company's profitability. Required Should the quarterly magazine be discontinued? Support your answer with the necessary calculations.