StoneWorks is a company that sells tile. It has three profit centers: ceramic, stone and granite. Below is financial information for the three centers for the year.

Ceramic Stone Granite

Revenue $100,000 $125,000 $150,000

Variable costs as a percentage of sales 40% 60% 64%

Fixed costs:

Costs unique to the profit center 30,000 45,000 64,000

Costs allocated by the retail store 6,000 7,000 8,000

Which ONE of the following statements is TRUE?

• Assuming that these data are reliable, only the Ceramic Division should be closed.
• Assuming that these data are reliable, none of the three divisions should be closed.
• Assuming that these data are reliable, only the Stone Division should be closed.
• Assuming that these data are reliable, both the Stone and the Granite Divisions should be closed.
• Assuming that these data are reliable, only the Granite Division should be closed.