The most recent monthly income statement for Headphones Manufacturing Company is given below: Department A Department B ($) Total (S) ($) Sales 406,650 600,340 1,006,990 Variable expenses 256,530 420,000 676.530 Contribution margin 150,120 180,340 330,460 Traceable fixed expenses 100,000 200,000 300,000 Segment margin 50,120 (19,660) 30,460 Common fixed expenses 20,870 29.130 50,000 Net operating income 29,250 (48,790) (19.540) Due to its poor result, consideration is being given to closing Department B. Studies show that if Department B is closed, 20% of its traceable fixed expenses will continue unchanged. The studies also show that closing Department B would result in a 5 percent decrease in sales in Department A. The company allocates common fixed expenses to the departments on the basis of sales dollars. Required: a) Determine the monthly financial advantage (disadvantage) of closing Department B. Discuss whether Department B should be closed. b) Suppose the overall variable expense ratio of the company will remain constant as in the current situation, compute the dollar amount of sales required for the company to breakeven.