Nancy Jackson, a recent graduate of Penny Worth University's accounting program, evaluated the operating performance of Wildhorse Company's six divisions. Nancy made the following presentation to Wildhorse's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $23,300." The Other Five Divisions Erie Division Total Sales $1,664,500 $100,400 $1,764,900 Cost of goods sold 978,100 76,100 1,054,200 Gross profit 686,400 24,300 710,700 Operating expenses 528,500 47,600 576,100 Net income $157,900 $(23,300) $134,600 In the Erie division, the cost of goods sold is $61,000 variable and $15,100 fixed, and operating expenses are $14,600 variable and $33,000 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued.Is Nancy right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase Continue Eliminate (Decrease) V $ $ $ Sales Contribution margin Variable costs Fixed costs Net income / (loss) $ $ $ Nancy is incorrect. v