The word file is the question. Please use the excel file as the template to answer it. Also along with the solution, could you also provide the calculation or explanation to the problem. Thank you.

PROBLEM 22-4B
    Problem 22-4B
    For this 1st part of the CLA2 please explain the initial problem and all assumptions then provide soulution and explain your work in detail
     and for both parts of CLA2 please provide at least 5 referrences these referrences 1 should be from the textbook as source of the data
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                    Guitar    Piano    Combine
                sales    $ 370,500    $ 279,500    $ 650,000
                cost of goods sold    $ 320,000    $ 175,000    $ 495,000
                Gross profitc= sales - cost of goods sold    $ 50,500    $ 104,500    $ 155,000
                Direct expenses
                salaries    $ 35,000    $ 25,000    $ 60,000
                maintenance    $ 12,000    $ 10,000    $ 22,000
                utilities    $ 5,000    $ 4,500    $ 9,500
                insurance    $ 4,200    $ 3,700    $ 7,900
                Direct Expenses    $ 56,200    $ 43,200    $ 99,400
                Indirect Expenses
                Advertising    $ 8,550    $ 6,450    $ 15,000
                Salaries    $ 16,200    $ 10,800    $ 27,000
                Office Expenses    $ 2,000    $ 1,200    $ 3,200
                Indirect Expenses    $ 26,750    $ 18,450    $ 45,200
                Operating Income    $ (32,450)    $ 42,850    $ 10,400
                Reduced revenues vs reduced cost trade off analysis to see if closing Guitar department is the right decision
                Reduced revenues    $ 370,500
                reduced costs (except indirect costs)
                Reduction in costs of goods    $ 320,000
                Reduction in Direct Expenses    $ 56,200
                reduced...