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Question 2 of 4 > 0.57 / 3 E ... Your answer is partially correct. Patricia Johnson, a recent graduate of Ceradyne University's accounting program,

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Question 2 of 4 > 0.57 / 3 E ... Your answer is partially correct. Patricia Johnson, a recent graduate of Ceradyne University's accounting program, evaluated the operating performance of Windsor Company's six divisions. Patricia made the following presentation to Windsor's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $24,500." The Other Five Divisions Erie Division Total Sales $1,663,000 $100,800 $1,763,800 Cost of goods sold 978,500 77,000 1,055,500 Gross profit 684,500 23,800 708,300 Operating expenses 526,000 48,300 574,300 Net income $158,500 $(24,500) $134,000 In the Erie division, the cost of goods sold is $60,500 variable and $16,500 fixed, and operating expenses are $15,500 variable and $32,800 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Patricia right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Q SearchQuestion 2 of 4

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