Exercise 26-7 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 $26,100. The Other Percy Five Divisions Division Total Cost of goods sold Gross profit Operating expenses Net income $1,663,000 $100,900 $1,763,900 977,300 76,800 1,054,100 709,800 578,600 $157,300 $(26,100) $131,200 695,700 24,100 528,400 50,200 In the Percy Division, cost of goods sold is $59,500 variable and $17,300 fixed, and operating expenses are $31,000 variable and $19,200 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 (Decrease) Continue Eliminate Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Veronica is