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Donna Clark, a recent graduate of Steering University's accounting program, evaluated the operating performance of Blossom Company's six divisions. Donna made the following presentation to

image text in transcribed Donna Clark, a recent graduate of Steering University's accounting program, evaluated the operating performance of Blossom Company's six divisions. Donna made the following presentation to Blossom'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 $24,900." In the Erie division, the cost of goods sold is $59,900 variable and $16,700 fixed, and operating expenses are $14,600 variable and $33,800 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Donna right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number eg. 15,000 or parenthesis, e.g. (15,000).) Donna is

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