Jennifer Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Pharoah Company's six divisions. Jennifer made the following presentation to Pharoah'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 Five Divisions Percy Division Total Sales $1,663,000 $100,400 $1,763,400 Cost of goods sold 977,900 76,700 1,054,600 Gross profit 685,100 23,700 708,800 Operating expenses 526.800 50,100 576.900 Net income $158,300 $(26,400) $131,900 In the Percy Division, cost of goods sold is $59,400 variable and $17,300 fixed, and operating expenses are $30,200 variable and $19,900 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Jennifer right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Continue Eliminate $ Net Income Increase (Decrease) Operating expenses Total fixed Net income (loss) Jennifer is