Nicole Filippas, a recent graduate of Rollings University's accounting program, evaluated the operating performance of Poway Company's six divisions. Nicole made the following presentation to Poway'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 $23.500. The Other Five Divisions Erie Division Total Sales $1,663,500 $100,100 $1,763,600 Cost of goods sold 978.500 76,100 1,054,600 Gross profit 685,000 24,000 709.000 Operating expenses 528,500 47,500 576,000 Net income $156,500 $(23,500) $133,000 In the Erie division, the cost of goods sold is $59,700 variable and $16,400 fixed, and operating expenses are $15.300 variable and $32,200 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued