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Karen Mars, a recent graduate of Bell's accocinting program, evaluated the operating performance of Crane Compary's six divisions. Karen made the following presentation to Crane's

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Karen Mars, a recent graduate of Bell's accocinting program, evaluated the operating performance of Crane Compary's six divisions. Karen made the following presentation to Crane's board of directors and suggested the Percy Division be eliminsted. "If the Percy Division is eliminated.' she said, "our total profits would increase by $26.100 : In the Percy Division, cost of goods sold is $59,000 variable and 517,000 foved, and operating expenses are 529,100 variable and 321.100 fixed. None of the Percy Division's fuxed costs will be eliminated is the division is discontinued. Is Karen right about eliminating the Percy Division7 Prepare a schedule to support your answer, (Enter ncgative arnounts iesing either a negotive sign preceding the number eg. 45 or parentheses e.g. (45). Variablecosts Cost of goods seld Operating experises: Total variable Contribution markin) Fiond sost: Cost of gopds sold Operating expranen Todaifned Net income (iass) Karen is

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