E23-15B Jamie Martin, a recent graduate of State's accounting program, evaluated the operating performance of Sanger Company's six divisions. Jamie made the following pre- sentation to the Sanger board of directors and suggested the Micro Division be eliminated. "If the Micro Division is eliminated," she said, "our total profi ts would increase by $23,870." The Other Micro Five Divisions Division Total Sales $1,664,200 $ 96,200 $1,760,400 Cost of goods sold 978,520 76,470 1,054,990 Gross profit 685,680 19,730 705,410 Operating expenses 527,940 43,600 571,540 Net income $ 157,740 $(23,870) $ 133,870 In the Micro Division, cost of goods sold is $70,000 variable and $6,470 fixed, and operat- ing expenses are $15,000 variable and $28,600 fixed. None of the Micro Division's fixed costs will be eliminated if the division is discontinued. Instructions Is Jamie right about eliminating the Micro Division? Prepare a schedule to sup- port your