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All of the allocated costs will continue even if a division is discontinued. Pharoahallocates indirect fixed costs based on the number of units to be
All of the allocated costs will continue even if a division is discontinued. Pharoahallocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss. Pharoah is concerned that it should be discontinued. Pharoah 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. Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermedlate calculations and round final answers to 0 decimal places, es. 1 , 525 . Should Pharoah close the Wise division
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