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E20-15 Use incremental analysis concerning elimination of division. Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn'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 $26,000." The Other Percy Five Divisions Division Total Sales $1,664,200 $100,000 $1,764,200 Cost of 978,520 76,000 1,054,520 Gross PI 685,680 24,000 709,680 Operatin 527,940 50,000 577,940 Net incor $157,740 ($26,000) $131,740 In the Percy Division, cost of goods sold is $61,000 variable and $15,000 fixed, and operating expenses are $30,000 variable and $20,000 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Instructions Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". Value Value Value Value Value Value Value Value Value ? ? ? ? ? Value Value Value Value Value Value ? ? ? ? ? Resports: After you have completed E20-15, consider the following additional question. 1 . Assume that variable cost of goods sold for the Percy Division changed to $68,000 and fixed operating expenses changed to $27,500. There was no change to variable operating costs. How would these changes impact your