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Jamie Martin, a recent graduate of State's accounting program, evaluated the operating performance of Sanger Company's six divisions. Jamie made the following presentation to the

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Jamie Martin, a recent graduate of State's accounting program, evaluated the operating performance of Sanger Company's six divisions. Jamie made the following presentation to the Sanger board of directors and suggested the Micro Division be eliminated. "If the Micro Division is eliminated," she said. "our total profits would increase by $23,870." In the Micro Division, cost of goods sold is $70,000 variable and $6,470 fixed, and operating expenses are $15,000 variable and $28,600 fixed. None of the Micro Division's fixed costs will be eliminated if the division is discontinued. Is Jamie right about eliminating the Micro Division? Prepare a schedule to support your

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