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Bramble Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions, Bramble made the following presentation to Dunn's

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Bramble Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions, Bramble made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated." the Percy Division is eliminated, she said, "our total profits would increase by $26,600 The Other Five Divisions Percy Division Total $1.663,000 $100,400 $1.763,400 Sales Cost of goods sold Gross profit 978,800 76.900 1,055,700 684,200 23,500 707,700 Operating expenses 526,200 50,100 576,300 Net Income $158,000 $ 126,600) $131.400 In the Percy Division, cost of goods sold is $59,300 variable and $17,600 fixed, and operating expenses are $29.200 variable and $20.900 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. is Bramble right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number es.-45 or parentheses es (451) Net Income Increase (Decrease) Continue Eliminate Sales $ Variable costs In the Percy Division, cost of goods sold is $59,300 variable and $17,600 fixed and operating expenses are $29,200 variable and $20,900 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Bramble right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es. (451) Net Income Increase (Decrease) Continue Eliminate Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses 140 Liit Increase (Decrease) Continue Eliminate Sales $ Variable costs Cost of goods sold Operating expenses Total variable I Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) $ $ $

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