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solve it plz Moving to another question will save this response. Question 1 points Karim Ahmed, a recent graduate of an accounting program, evaluated the
solve it plz
Moving to another question will save this response. Question 1 points Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of Lunar Company's four divisions Karim Ahmed made the following presentation to the Lunar board of directors and suggested the Riffa Division be eliminated. If the Rita Division is eliminated," she said, "oor total profits would inc by "$20,000" The Other Four Riffa Divisions Sales $1,600,000 Cost of goods sold 950,000 Gross profit- 650,000 Operating expenses 500.000 Net income $150,000 Division $110,000 80,000 30,000 50,000 ($20,000) Net income $150,000 50,000 ($20,000) In the Riffa Division, cost of goods sold is $65,000 variable and $15,000 fixed, and operating expenses are $40,000 variable and $10,000 food None of the Rota Division's fixed costs will be eliminated if the division is discontinued Required: (1) Prepare an incremental analysis to eliminate or keep a division decision (6.5 marks) (2) Is Karim Ahmed right about eliminating the Riffa Division? Why or why not? (1.5 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) I Paragraph *** B I. US AV 5 2 V Arial V 10pt E M x0 39 X XG 11 - 8:3- E HE CB BC 30 * (:) # DELL S Step by Step Solution
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