Beverages $($Pty$)$ Ltd $($Beverages$)$ has four different divisions. One of their divisions

$($Energy$)$ which produces energy drinks called $$LessFire$$ has been struggling for the

past three years due to intense market competition.

The results of the division for the financial year ended June $2024$ were as follows:

Rands

Sales $2000000$

Direct Material $(1450000)$

Depreciation $(400000)$

Salaries and wages $(650000)$

Profit$/($Loss$)(500000)$

Should the Energy the division be shut down the entire workforce will be retrenched

at a cost of R$250000.$

REQUIRED:

Determine whether the Energy division should be shut down or not.

Should you wish to intentionally include or omit a figure from the workings, provide a

brief motivation for this decision. Use the format below.

Rands Reason for Inclusion $/$Omission

Round your answers to two decimal places where required.