Wonderful Store has three departments: A, B, and C. The results of December, 2019 are presented below: A B C Total Units sold 10,000 14,000 8,000 32,000 Revenue $160,000 $120,000 $60,000 $340,000 Less variable costs 74,000 84,000 28,000 186,000 Less direct fixed costs 30,000 50,000 26,000 106,000 Less allocated fixed costs 6,250 8,750 5,000 20,000 Net income $49,750 ($22,750) $1,000 $28,000 All of the allocated costs will continue even if a division is discontinued. Wonderful allocates indirect fixed costs based on the number of units to be sold. Since Department B has a net loss, Wonderful feels that it should be discontinued. Wonderful feels if the department is closed, that sales at the Department A will increase by 30%, and that sales at Department C will stay the same. Instructions a) Prepare an analysis showing the effect of discontinuing Division B (7 marks). b) Should Wonderful close Department B? Briefly indicate why or why not (3 marks).