ww Karim Ahmed, a recent graduate of an accounting program, evaluated the operating perfomance of Lunar Company's ou dvon Kame beg to the Lunar board of directors and suggested the fos Division be innated the Foffs Division is mated, she said. "our tal prof wody, 06 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 Net income 500,000 $150,000 50,000 ($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 fixed. None of the Riffs Division's ad costs will be eliminated if the division is discontinued Required: (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? For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac) BIUROMUL 5 marks) (1.5 marks)