You have been appointed to evaluate Rainbow Company's performance. The company has a total of four divisions. A detailed evaluation shows that the handcraft divisions is currently experiencing net loss. The following presentation was made to Rainbow's board of directors and during the presentation, their accountant made the recommendation to eliminate the handcraft division, stating that total net income would increase by RM10,000. The other three division's cost of goods sold is 80% variable and operating expenses are 70% variable. The cost of goods sold for the handcraft division is 20% fixed, and its operating expenses are 40% fixed. If the division is eliminated, only RM13,000 of the fixed operating costs will be eliminated. Sales Cost of Goods sold Gross profit Operating Expenses Net income Other three divisions RM2,500,000 850,000 1,650,000 700,000 RM950,000 Handcraft division RM300,000 255,000 45,000 55,000 (RM10,000) Total RM2,800,000 1,105,000 1,695,000 755,000 RM940,000 Instructions Do you concur with the new accountant's recommendation? Present a schedule to support your answer.