+ Ch7 HW Question 8 of 8 -/8 9 View Policies Current Attempt in Progress Sarah Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Blossom Company's six divisions. Sarah made the following presentation to Blossom's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,000." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,600 $1,763,600 Cost of goods sold 979,000 76,400 1,055.400 Gross pront 684,000 24,200 708,200 Operating expenses 526,800 50,200 577,000 Net income $157,200 $ $(26,000) $131,200 In the Percy Division, cost of goods sold is $60,500 variable and $15,900 fixed, and operating expenses are $30,000 variable and $20,200 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sarah 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 eg. (45).) 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 Total fixed Net income (loss) $ $ $ $ $ $ Sarah is e Textbook and Media Save for Later Attempts: 0 of 3 used Submit