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please show workings Question 12 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Bridgeport Company's six divisions. Veronica made
please show workings
Question 12 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Bridgeport Company's six divisions. Veronica made the following presentation to Bridgeport'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 $25,700." Sales Cost of goods sold Gross profit Operating expenses The Other Percy Five Divisions Division Total $1,663,000 $100,900 $1,763,900 977,800 76,100 1,053,900 685,200 24,800 710,000 526,900 50,500 577,400 $158,300 $ (25,700) $132,600 Net income In the Percy Division, cost of goods sold is $59,300 variable and $16,800 fixed, and operating expenses are $30,400 variable and $20,100 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 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 isStep by Step Solution
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