PRINTER VERSION CALCULATOR BACK NEX 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 $27,100. Percy Division The Other Five Divisions Total $1,665,000 $100,100 $1,765,100 Sales Cost of goods sold 978,700 76,700 1,055,400 709,700 Gross profit 686,300 23,400 528,700 50,500 579,200 Operating expenses $157,600 $(27,100) $130,500 Net income In the Percy Division, cost of goods sold is $60,100 variable and $16,600 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. (Enter negative amounts 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)