Shortower Bhd currently publish, print and distribute a range of catalogues and instruction manuals. The management has now decided to discontinue printing and distribution and concentrate solely on publishing. Longplant Bhd will print and distribute the range of catalogues and instruction manuals on behalf of Shortower Bhd commencing either at 30 June or 30 November. Longplant Bhd will receive RM65 000 per month for a contract which will commence either at 30 June or 30 November. The results of Shortower Bhd for a typical month are as follows: lPublishing IPrinting Distribution | IRM'OOO IRM'OOO RM'OOO | 19|Page ABMC30M Con and Management Accounting [1 Materials supplies Occupancy costs I 7 8.5 Depreciation Other information has been gathered relating to the possible closure proposals: (i) Two specialist staff from printing will be retained at their present salary of RM1500 each per month in order to full a link function with Longplant Bhd. 0n closure, all other printing and distribution staff will be made redundant and paid an average of two months' redundancy pay. (ii) The printing department has a supply of materials (already paid for) which cost RM18 000 and which will be sold to Longplant Bhd for mm 000 if closure takes place on 30 June. Otherwise the material will be used as part of the July printing requirements. The distribution department has a contract to purchase pallets at a cost of RMS 000 at the month of September. Non acceptance of contract will result a penalty of RM3 500. (iii) Company expenditure on apportioned occupancy costs to printing and distribution will remain unchanged if printing and distribution departments are closed. At present, 30 per cent of printing and 25 per cent of distribution occupancy costs are directly attributable costs which are avoidable on closure, while the remainder are apportioned costs. (iv) Printing plant and machinery has an estimated net book value of RM48 000 at 30 June. It is anticipated that it will be sold at a loss of RM21 000 on 30 June. If sold on 30 November the prospective buyer will pay RM25 000. Required: Using the above information, prepare a summary to show whether Shortower Bhd should close the printing and distribution departments on nancial grounds on 30 June or on 30 November