Exercise 199 (Part Level Submission) A recent accounting graduate from Marvel State University evaluated thee operating performance of Fanning Company's four divisions. The following presentation was made to Fanning's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $60,000. (See analysis below.) Southern Division Total Other Three Divisions $ 2,000,000 $480,000 $2,480,000 Sales 1,350,000 950,000 400,000 Cost of Goods Sold B0,000 1,130,000 1,050,000 Gross Profit 140,000 940,000 Operating Expenses 800,000 $(60,000) $ 190,000 250,000 Net Income For the other divisions, cost of goods sold is B0 N variable and operating expenses are 70% variable. The cost of goods sold for the Southern Division is 30% fixed , and its operating expenses are 75 % fixed. If the division is eliminated, only $15,000 of the fixed operating costs will be eliminated. (a) Prepare the analysis for new accountant's recommendation. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) Net Income (a) Prepare the analysis for new accountant's recommendation, (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) Net Income Continue Eliminate Increase (Decrease) Attempts: 0 of 15 used