El Pico Company has two divisions: Maya and Aztec. During 2000, they had the following operating data:

\begin{tabular}{|c|c|c|}

\hline & \begin{tabular}{l}

Maya \\

Division

\end{tabular} & \begin{tabular}{c}

Aztec \\

Division

\end{tabular} \\

\hline Revenue. & $\$ 100,000$ & $\$ 120,000$ \\

\hline \multicolumn{3}{|l|}{ Fixed costs: } \\

\hline Costs unique to the division & 50,000 & 45,000 \\

\hline Costs allocated by corporate headquarters & 11,000 & 10,000 \\

\hline Variable costs per unit . . . . . . . . . . . . . . . . . . & 4 & 4 \\

\hline Unit sales price of division's product & 10 & 8 \\

\hline

\end{tabular}

1. Compute each division's contribution and segment margins, and the contribution each makes to overall company profits.

2. Interpretive Question: Based on only the financial information given, should either division be discontinued? Why?