Top Notch Corporation has four operating divisions. The budgeted revenues and expenses for each division for $2020$ follows: E$23)($Click to view the results of each division.$)$

Closing down any division would result in savings of $40\%$ of the fixed costs of that division. Top management is very concerned about the unprofitable divisions $($A and B$)$ and is considering closing them for the year.

Requirements

$1.$ Calculate the increase or decrease in operating income if Top Notch closes division A$.$

$2.$ Calculate the increase or decrease in operating income if Top Notch closes division B$.$

$3.$ What other factors should the top management of Top Notch consider before

making a decision?