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Karen White, a recent graduate of Cinrich University's accounting program, evaluated the operating performance of Waterway Compary's sox divisiotas. Karenmade the following presentation to Waterwars

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Karen White, a recent graduate of Cinrich University's accounting program, evaluated the operating performance of Waterway Compary's sox divisiotas. Karenmade the following presentation to Waterwars board of directors and sugested the Erie division be eliminated. "If the Erie division is eliminated;" she said, "our total profits would increase by $23,900 : In the Erie division, the cost of goods sold is $59,700 variable and $16,700 fixed, and operating expenses are $14,300 variable and $33,200 fixed. None of the Erie division's foxed costs will be eliminated if the division is discontinued Is Karen right about eliminating the Eric Division? Prepare a schedule to support your answer, fff an amount reduces the net income then In the Erie division, the cost of goods sold is $59,700 variable and $16,700 foced, and operating expenses are $14,300 variable and $33,200 foxed. None of the Erie division's froed costs will be eliminated if the division is discontinued. Is Karen right about eliminating the Erie Division? Prepare a schedule to support your answer, of an amount reduces the net income then enter with a negative sign preceding the number es, 15,000 or parenthesk, es. (15,000N)

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