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need it asap! Betty Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Betty made the following
need it asap!
Betty Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Betty made the following presentation to Cullumber'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 $26,500." In the Percy Division, cost of goods sold is $60,500 variable and $16,300 fixce, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Betty right about eliminating the Percy Division? Prepare a schedule to support vour answer. (Enter negotive amounts usirg either a negative sign preceding the number eg. 45 or parentheses es. (45).) Net Income Increase Continue Eliminate (Decrease) Sales $ 1663000 $ 1763000 $ 1663000 Variable costs Cost of goods sold 978100 Operating expenses 684900 Total variable 529000 Contribution margin Fixed costs Cost of gods sold Operating expenses Total fixed Betty is Step by Step Solution
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