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Maria Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Sheridan Company's six divisions. Maria made the following presentation to Sheridan's

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Maria Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Sheridan Company's six divisions. Maria made the following presentation to Sheridan'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 $26,600 :" In the Percy Division, cost of goods sold is $60,300 variable and $15,900 fixed, and operating expenses are $29,900 variable and $20,500 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Maria right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) In the Percy Division, cost of goods sold is $60,300 variable and $15,900 fixed, and operating expenses are $29,900 variable and $20,500 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Maria right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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