SULULIUITUI View Policies Current Attempt in Progress 01:07:1 Trump Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the do-it-yourself homeowner market. The company is considering disposing of the Consumer since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December 31, 2019 are presented below: Timber Division Consumer Division Total Sales $ 1,500,000 $ 500,000 $ 2,000,000 Cost of goods sold 900,000 350,000 1.250,000 Gross profit 600,000 150,000 750,000 Selling & administrative expenses 250.000 180,000 430,000 Net Income $ 350,000 $ (30,000) $ 320,000 In the Consumer Division, 70% of the cost of goods sold are variable costs and 35% of selling and administrative expenses are variable costs. The management of the company feels it cam save $45,000 of fixed cost of goods sold and $50,000 of fixed selling expenses if it discontinues operation of the Consumer Division Determine whether the company should discontinue operating the Consumer Division (Enter negative amounts using either a negative sin preceding the number -45 or parentheses (45). Do not leave any field blank Enter for the amounts. List variable expenses before foxed expenses.) Continue Eliminate Net Income Increase (Decrease 500.000 2.000.000 1.500.000 $ Cost of Goods Sold Apps Assignments Forgot Password C... Determine whether the company should discontinue operating the Consumer Division (Enter negative amounts using either a negative sig eg.(45). Do not leave any field blank. Enter o for the amounts. List variable expenses before fixed expenses.) Net Income Increase (Decrease) Continue 2,000,000 Eliminate 1,500,000 Sales $ $ $ 500,000 Cost of Goods Sold Selling and Administrative Expense Contribution Margin Sales 200,000 350,000 150,000 Variable Expenses Cost of Goods Sold Selling and Administrative Expense Net Income /(Loss) The company should not continue the Consumer Division