Nicole Filippas, a recent graduate of Rollings Universitys accounting program, evaluated the operating performance of Poway Companys six divisions. Nicole made the following presentation to Poways board of directors and suggested the Erie division be eliminated. If the Erie division is eliminated, she said, our total profits would increase by $24,200.

The Other Five DivisionsErie DivisionTotal

Sales$1,664,000$100,400 $1,764,400

Cost of goods sold977,90076,500 1,054,400

Gross profit686,10023,900 710,000

Operating expenses528,50048,100 576,600

Net income$157,600 $(24,200)$133,400

In the Erie division, the cost of goods sold is $60,600 variable and $15,900 fixed, and operating expenses are $14,700 variable and $33,400 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Nicole 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).)