Jetherit Corporation is filing its tax return. The junior accountant, David Hall, CPA, has simply imported everything from the financial statements to Jetherit's Form 1120. Candidates will take the role of Alonso Rejik, the senior accountant, who is tasked with informing David of his errors. The medium of information will be a letter that Alonso is writing to David. All of this work takes place in-house and is done by employees of Jetherit Corp. To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Original Text]from the list. If removal of the underlined text is the best revision to the document, select [Delete Text]from the list if available

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?