Exercise 21-15 Your answer is partially correct. Try again. Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn'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 $26,400." The Other Percy Five Divisions DivisionTotal Sales Cost of goods sold Gross profit Operating expenses Net income $1,663,000 $100,400 1,763,400 977,20077,000 1,054,200 709,200 578,300 685,800 23,400 528,500 49,800 $157.300 26,4002 520,900 In the Percy Division, cost of goods sold is $60,600 variable and $16,400 fixed, and operating expenses are $30,900 variable and $18,900 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).) Net Income Increase Continue Eliminate Sales 100400 $ 10040 Variable costs Cost of goods sold 606000 60 Operating expenses Total variable 150 Contribution margin 0 Fixed costs Cost of goods sold 164 Operating expenses 1890 Total fixed 53 Net income (loss) s264003 s8900 Veronica is inco Question Attempts: Unlimited