Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Elizabeth Mars, a recent graduate of Bell's accounting program, evaluated the operating perform divisions. Elizabeth made the following presentation to Oriole's board of directors and
Elizabeth Mars, a recent graduate of Bell's accounting program, evaluated the operating perform divisions. Elizabeth made the following presentation to Oriole's board of directors and suggested the Percy Div the Percy Division is eliminated," she said, "our total profits would increase by $27,200." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,665,000 977,400 687,600 528,700 $158,900 Percy Division $100,100 76,900 23,200 50,400 $(27,200 ) Total $1,765,100 1,054,300 710,800 579,100 $131,700 In the Percy Division, cost of goods sold is $60,000 variable and $16,900 fixed, and operating expenses are $ $19,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Elizabeth right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter m either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net In
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started