Sheridan, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 7,500 12,500 5,000 25,000 Revenue $175,000 $125,000 $100,000 $400,000 Less variable costs 80,000 65,000 40,000 185,000 Less direct fixed costs 35,000 47,500 30,000 112,500 Less allocated fixed costs 15,000 Net income $45,000 25,000 $(12,500) 10,000 50,000 $20,000 $52,500 All of the allocated costs will continue even if a division is discontinued. Sheridan allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sheridan is concerned that it should be discontinued. Sheridan thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to O decimal places, eg. 1,525) Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ Should Sheridan close the Wise division? Bud $ Er Total $ $