Sunland, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 7,800 13,000 5,200 26,000 Revenue $182,000 $130,000 $104,000 $416,000 Less variable costs 83,200 67,600 41,600 192,400 Less direct fixed costs 36,400 49,400 31,200 117,000 Less allocated fixed costs 15,600 26,000 10,400 52,000 Net income $46,800 $(13,000) $20,800 $54,600 All of the allocated costs will continue even if a division is discontinued. Sunland allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sunland is concerned that it should be discontinued. Sunland 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. (a) Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 1,525.) Bud Er Revenue $ $ $ Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit