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Question 10 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Swifty Company's six divisions. Veronica made the following presentation to Swifty'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 $24,900." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division Total $1,665,000 $100,900 $1,765,900 977,500 76,100 1,053,600 687,500 24,800 712,300 527,500 49,700 577,200 $160,000 $ (24,900) $135,100 In the Percy Division, cost of goods sold is $60,400 variable and $15,700 fixed, 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 Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales $ $ $ Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) $ $ Veronica is Show Work is REQUIRED for this question: Open Show Work