Current Attempt in Progress Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn'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 $27,000." The Other Five Divisions Percy Division Total Sales Cost of goods sold $1,665,000 978,300 686,700 528,100 $100,000 76,600 23,400 50,400 $1,765,000 1,054,900 710,100 578,500 Gross profit Operating expenses Net income $158,600 $ (27,000) $131,600 In the Percy Division, cost of goods sold is $60,100 variable and $16,500 fixed, and operating expenses are $29,200 variable and $21,200 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Veronica 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 eg. (45).) Net Income Increase (Decrease) Continue Eliminate Sales 100000 - 100000 Variable costs Cost of goods sold -60100 60100 Operating expenses -29200 29200 Total variable Contribution monin In the Percy Division, cost of goods sold is $60,100 variable and $16,500 fixed, and operating expenses are $29,200 variable and $21,200 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Veronica 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 eg. (45).) Net Income Increase (Decrease) Continue Eliminate Sales 100000 $ -100000 Variable costs Cost of goods sold -60100 60100 Operating expenses -29200 0 29200 Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Veronica is