Question 20 Howukee, Inc. has three division Bud, Wise, and tr. The results of May, 2016 are presented below bud Wie EF Yeti Units sold 3,000 5,000 2,000 10,000 Revenue $70,000 $5,000 $40,000 $160,000 Les variable costs 32,000 26,000 16,000 74,000 Le direct fored 14,000 19,000 12,000 45,000 Les cated Podcasts 6,000 10,000 4,000 20,000 Net Income $18,000 $(5,000) $3,000 $ 21,000 All of that allocated costs will contine event division is discontinued. Milwaukee allocate indirect fixed cons based on the number of writs to be sold. Since the Wise division has a netom, Milwaukee feels that it should be discontinued. Milwaukne foals if the division is doned, that sales at the Bud division will increase by 12, and that at the Er division will stay the same Prepare an analysis showing the effect of discontinuing the Wise division (not run intermediate calculation and round final answers to decimal 15.5.) bud Total Revenue Las variable cost Les directed costs Les allocated and costs Net Income Version Less allocated fixed costs Net Income 6,000 $18,000 10,000 $(5,000) $ 8,000 $ 21,000 All of the allocated costs will continue even if a division is discontinued. Milwnukee allocates indirect fixed costs based on the number of un Milwaukee feels that it should be discontinued. Milwaukee feels if the division is closed, that sales at the Bud division will increase by 12%, Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round float an Bud Er Total Revenue Less variable costs Less direct foced costs Less allocated fixed costs Net Income Should Milwaukee close the Wise division