URGENT PLEASE

ham, Inc., a financial vice president of the company believes that the firm's total net income could be increased by $200,000 if its engineering division were discontinued. (Amounts are given in thousands of dollars.) Totals All Other Divisions Engineering Division ...$11,200 $8,000 Sales. Cost of services: . .. 3,200 (3,880) (2,120) (2,600) (1,400) $4,000 (1,280) (720) $ 1,200 Fixed Operating expenses: Variable.. Fixed (3,000) (1.600) S 600 (2,000) (1.200) S 800 (1,000) (400) . .. Net income (loss) S (200) Required Provide answers for each of the following independent situations: a. Assuming that total fixed costs and expenses would not be affected by discontinuing the engi- neering division, prepare an analysis showing why you agree or disagree with the vice president. Assume that discontinuance of the engineering division will enable the company to avoid 20% of the fixed portion of cost of services and 25% of the fixed operating expenses allocated to the engineering division. Calculate the resulting effect on net income. b