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." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,665,000 978,500 686,500 526,300 $160,200 Percy Division $100,000 76,200 23,800 50,400 $(26,600 ) Total $1,765,000 1,054,700 710,300 576,700 $133,600 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.

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