Home Improvement Company, a retail home store, has two major divisions€”outdoor and indoor. Here is the data on their income and expenses:

Due to the loss, the general manager is considering closing the outdoor division and just focusing on the indoor division. If the division were closed, the supervisor salary and the advertising costs could be eliminated. Should the division be closed? Please show your computations to support youranswer.

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(TDotal Indoor; (O)utdoor (T)S85,000; )S50,000; (O)S35,000 (T)S35,000; (I)S15,000 (O)S20,000 (T)S50,000; (I)S35,000; (O)S15,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising: Supervisor salaries (T)S5,000; (S2,000; (O)S3,000 (T)S19.000 IS10,000 (O)S9,000 (T)S2,000; IS1,000; (O)S1,000 tore insurance General administrative overhead Total fixed expenses Net operating income (loss): (TS11,000; I)S8,000; (O)S3.000 (T)S37,000; (IS21,000; (O)S16,000 (T) $13,000; (I S14,000; (O) ($1,000)