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Judy Jean, a recent graduate of Rolling?s accounting program, evaluated the operating performance of Artie Company?s six divisions. Judy made the following presentation to Artie?s

Judy Jean, a recent graduate of Rolling?s accounting program, evaluated the operating performance of Artie Company?s six divisions. Judy made the following presentation to Artie?s board of directors and suggested the Huron Division be eliminated. ?If the Huron Division is eliminated,? she said, ?our total profits would increase by $25,790.?
The Other Five DivisionsHuron DivisionTotal
Sales$1,663,020$100,350$1,763,370
Cost of goods sold978,76076,1201,054,880
Gross profit684,26024,230708,490
Operating expenses526,49050,020576,510
Net income$157,770$ (25,790)$131,980
In the Huron Division, cost of goods sold is $60,700 variable and $15,420 fixed, and operating expenses are $24,700 variable and $25,320 fixed. None of the Huron Division?s fixed costs will be eliminated if the division is discontinued. Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
ContinueEliminateNet Income Increase (Decrease)
Sales$$$
Variable costs
Cost of goods sold
Operating expenses
Total variable
Contribution margin
Fixed costs
Cost of goods sold
Operating expenses
Total fixed
Net income (loss)$$$
Is Judy right about eliminating the Huron Division?
Judy is

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