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Oriole, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 11,500 4,600 23,000 6.900 $ 161,000 73,600 $ 115,000 $92,000 $368,000 170,200 59,800 36,800 Revenue Less variable costs Less direct fixed costs Less allocated fixed costs 32,200 43.700 27,600 103,500 13,800 23,000 9,200 46,000 Net income $41.400 $( 11,500) $18.400 $ 48,300 All of the allocated costs will continue even if a division is discontinued Oriole allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Oriole is concerned that it should be discontinued, Oriole thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to decimal places, es 1,525.) For C Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to decimal places, eg. 1,525.) Bud Er Total Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income Should Oriole close the Wise division

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