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:

Sales R$2000000$

Direct Material $($R$1450000)$ Depreciation $($R$400000)$

Salaries and wages $($R$650000)$

$=$ Profit$/($Loss$)($R$500000)$

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.