2 of 4 > View Policies !!! -/3 E Current Attempt in Progress Nicole Filippas, a recent graduate of Rollings University's accounting program, evaluated the operating performance of Poway Company's six divisions. Nicole made the following presentation to Poway's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $24,300." The Other Five Divisions Erie Division Total Sales $1,663,500 $100,100 $1,763,600 Cost of goods sold 977,400 76,300 1,053,700 Gross profit 686,100 23,800 709,900 Operating expenses 529,000 48,100 577,100 Net income $157,100 $(24,300 ) $132,800 In the Erie division, the cost of goods sold is $60,900 variable and $15,400 fixed, and operating expenses are $14,500 variable and $33,600 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Nicole right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number e.g.-15,000 or parenthesis, e.g. (15,000).) Sales Variable costs Contribution margin Fixed costs $ Net income (loss) $ Nicole is Continue | $ Eliminate -0- $ -0- $ Net Income Increase (Decrease)