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Donna Mars, a recent gaduate of Bell's accounting program, evaluated the operating performance of Pharoah Company's sik divisions. Donna made the following presentation to Pharoah's

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Donna Mars, a recent gaduate of Bell's accounting program, evaluated the operating performance of Pharoah Company's sik divisions. Donna made the following presentation to Pharoah's board of directors and supgested the Percy Divbion be eliminated. "If the Percy Division is eliminated, she said, "our total profits would increase by $27,100." In the Percy Division, cost of goods sold is $60,100 variable and $16,600 foed, and operating expenses are $30,400 variable and 320,100 foxed None of the Percy Division's fixed costs will be eliminated if the divisian is discontinued. Is Donna right about eliminating the Percy Division? Prepare a schedule to support your answer (tinter nesative amoumts using either a negathe sign preceding the number es. -45 or parenthesereg. (45))

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