Problem $5\mathrm{.}1$Specific Gas Appliances Inc. has three divisions, each producing one type of appliance. The companys income tax rate is $40\%.$ The following segmented income statement has been prepared for the current year. Stoves Refrigerators Dishwashers Total Sales$$120,000$ $$350,000$ $$980,000$ $$1,450,000$ Variable costs$35,000175,000700,000910,000$ Contribution margin$85,000175,000280,000540,000$ Fixed direct costs$18,00025,000190,000233,000$ Segment margin$67,000150,00090,000307,000$ Indirect fixed costs $265,000$ Income before income taxes $42,000$ Income taxes $16,800$ Net income $$25,200$ Required:$1.$ Calculate the net income effect in the short$-$term if the dishwasher division is eliminated$\mathrm{.}2.$Assume revenue and costs will be stable in the next year. A six$-$month, $$100,000$ advertising campaign can be undertaken in the next fiscal year at only one division. It is estimated that the campaign would increase revenue for the chosen division by $$180,000.$ What should management do$?$ Consider income tax implications. Ignore time value of money considerations.Check figure: Highest contribution margin effect: $$127,800.$