Warner Bros. Movie World offers two special events during the year, "Fright Nights" and "White Christmas" events. The management of Warner Bros. Movie World feels that money can be saved if the offering of the three nights "Fright Nights" event was discontinued. The accountant has provided the following income statement that relates to the theme park's performance last year. The data shows the contribution of the two events to the overall profit performance for the year. Warner Bros. Movie World - Income Statement Annual performance Fright White Nights Total (excluding special events) Christmas (For three nights) Revenue $306,000 $19,600 $36,500 362,100 Cost of sales 68,000 6,300 7,500 81,8001 Gross profit $238,000 $13,300 $29,000 $280,300 Other expenses Salaries & 82,000 14,000 17,000 113,000 Wages Electricity 13,000 1,260 3,500 17,760 Advertising 7,000 1,960 4,200 13,160 Maintenance 3,400 700 650 4,7501 Insurance 2,000 560 320 2,880 Total expenses 107,400 18,480 25,670 151,550 Net profit (loss) $130,600 ($5,180) $3,330 $128,750 The accountant has also produced the following information relating to the proposal to discontinue the "Fright Night event. This information relates to the financial data of the "Fright Night event only. Salaries and Wages: Electricity: Advertising: The theme park has fixed salaries of $5,600 for the three days that the "Fright Nights" take place. The remainder of salaries and wages are variable as they relate to casual staff. Even if the "Fright Nights" were discontinued, there would be $220 of fixed electricity charges payable per night. 40% of the advertising cost relate to an annual contract, the remainder is variable. The head of engineering has estimated that a total of $650 in maintenance would be saved in total if the "Fright Nights" event would not take place. If discontinued, $300 would be saved in insurance expenses for all three nights Maintenance: Insurance: Required: Prepare a financial analysis that demonstrates whether the Warner Bros management should discontinue the Fright Nights" and discuss your result. (15 marks)