Current Attempt in Progress Michelle Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Sandhill Company's six divisions. Michelle made the following presentation to Sandhill'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 $26,600." The Other Five Divisions Percy Division Total Sales $1,664,000 $100,000 $1,764,000 Cost of goods sold 978,000 76,900 1,054,900 Gross profit 686,000 23,100 709,100 Operating expenses 526,300 49,700 576,000 Net income $159,700 $ (26,600) $133, 100 In the Percy Division, cost of goods sold is $60,800 variable and $16,100 fixed, and operating expenses are $31,600 variable and $18,100 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Michelle right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TIVltage Continue Eliminate (Decrease) 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) $ $ $ Michelle is