Exercise 7-15 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 $25,500." The Other Percy Five Divisions Division Total Sales Cost of goods sold Gross profit Operating expenses Net income $1,665,000 $100,700 $1,765,700 978,100 76,600 1,054,700 711,000 528,100 49,600 577,700 $158,800 $(25,500) $133,300 686,900 24,100 In the Percy Division, cost of goods sold is $60,000 variable and $16,600 fixed, and operating expenses are $30,700 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).)