Current Attempt in Progress Karen White, a recent graduate of Cinrich University's accounting program, evaluated the operating performance of Waterway Company's six divisions. Karen made the following presentation to Waterway'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 $23,900. The Other Five Divisions Erie Division Sales $1,664,500 $100,000 Total $1,764,500 Cost of goods sold 977,000 76,400 1,053,400 Gross profit 687,500 23,600 711,100 Operating expenses 528,500 47.500 576,000 Net income $159.000 $(23,900) $135,100 In the Erie division, the cost of goods sold is $59.700 variable and $16,700 fixed, and operating expenses are $14,300 variable and $33.200 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Karen right about eliminating the Erie Division? Prepare a schedule to support your answer (if an amount reduces the net income then Type here to search 20C Sunny Question 6 of 7 < > -/12 E enter with a negative sign preceding the number eg.-15,000 or parenthesis, eg. (15,000).) Net Income Increase (Decrease) Karen is $ Continue Eliminate $