QUESTION 13 An accounting intern from East Vestory College evaluated the operating performance of Price Company. The following presentation was made to Price's Board of Directors Other Four Divisions Lawn Furniture Division Total Sales $2,000,000 $480,000 $2,480,000 Cost of Goods Sold 950.000 400.000 1.350.000 Gross Profit 1,050,000 80,000 1,130,000 Operating Expenses 800.000 140.000 940.000 Net Income $ 250.000 5.(60.000) $190.000 During the presentation, the chief accountant made the recommendation to eliminate the Exercise/Spa Division stating that total net income would increase by $60,000. For the other four divisions, cost of goods sold is 75% variable and operating expenses are 80% variable. The cost of goods sold for the Lawn Furniture Division is 40% fixed, and its operating expenses are 70% fixed. If the Lawn Furniture division is eliminated, only $20,000 of the fixed operating costs will be eliminated Instructions Present the analysis in a table. Do you concur with the chief accountant's recommendation? State your conclusion clearly and present a schedule to support your