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divisions. Dorothy made the following presentation to Sandhill's board of directors and suggested the Percy Division be eliminated. If the Percy Division is eliminated, she

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divisions. Dorothy 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." In the Percy Division, cost of goods sold is $59,400 variable and $17,300 fixed, and operating expenses are $30,100 variable and $20,300 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Dorothy 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).) Dorothy is

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