Elizabeth Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Oriole Company's six divisions. Elizabeth made the following presentation to Oriole'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 $27.200 The Other Five Divisions Percy Division Total Sales $1,665,000 $100,100 $1,765,100 Cost of goods sold 977,400 76,900 1,054,300 Gross profit 687,600 23,200 710,800 Operating expenses 528,700 50,400 579,100 Net income $158,900 $(27,200) $131,700 In the Percy Division, cost of goods sold is $60,000 variable and $16,900 fixed, and operating expenses are $30,800 variable and $19,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued.