Dorothy Taylor, a recent graduate of Bell's accounting program, evaluated the operating performance of Sandhill Company's six 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" Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,664,000 978,500 685,500 527500 $158.000 Percy Division $100,500 76,700 23,800 50,400 $126,600) Total $1,764,500 1,055,200 709.300 577.900 $131.400 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)) Net Income Increase Continue Eliminate (Decrease) Sales 100,500 $ Variable costs Cost of goods sold $ $ O 0 o Operating expenses I D Total variable 0 Contribution margin Fixed costs Cost of goods sold Net Income Increase (Decrease) Continue Eliminate Sales S 100,500 $ 0 $ Variable costs Cost of goods sold 0 0 0 Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold 0 Operating expenses Total fixed Net Income (loss) $ Dorothy is e Textboo corred Incorrect