Question 7 20 pts Comany Khas two divisions whose most recent financial information is below. Company K is considering time Division 1 Sales Variable Material Costs Allocated Corporate Fixed Variable Labor Costs Division Specific Fixed Costs Division 1 100,000 60,000 25,000 10,000 7,500 Division 2 400.000 175.000 75,000 40,000 12,500 A. Which of the costs are avoidable (relevant) in this decision? B. If Company k decides to keep Division 1, what is the total net income reported by Company K? c. If Company K decides to eliminate Division 1, what is the total net income reported by Company K? D. Should Company k eliminate Division 1? Why? E. What is the minimum sales revenue that Division 1 must earn if it is NOT to be eliminated? BIU A-A- IEEIX X, SE