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beson we saw Question 3 Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of Luer Company's four w board of directors and suggested the Riffa Division be eliminated. "If the Riffa Division is eliminated," she said, "our fetal gros w by Kats The Other Four Riffa Divisions Division Sales $1,000,000 $110,000 Cost of goods sold 950,000 80,000 Gross profit 650,000 30,000 Operating expenses 500,000 50,000 Net income $150,000 ($20,000) In the Riffa Division, cost of goods sold is $65,000 variable and $15,000 fixed, and operating expenses are $40,000 variable and $10,000 faed None of the Rota Divisions feeds will be eliminated if the division is discontinued. Required: (6.5 marks) (1) Prepare an incremental analysis to eliminate or keep a division decision. (2) Is Karim Ahmed right about eliminating the Riffa Division? Why or why not? (1.5 marks) 33 35 mas E LI. AV #v V For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac). 10pt Arial BIVS Paragraph A !!! V D FB FA OB 400 @