Question 3 of 4 - /5 View Policies Current Attempt in Progress 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." the Percy Division is eliminated, she said, "our total profits would increase by $26.000." Sales Cost of goods sold Gross profit Operating expenses Net Income The Other Five Divisions $1,664,200 978,520 685.680 527,940 $157.740 Percy Division $100,000 76,000 24,000 50,000 $426,000 Total $1,764.200 1,054,520 709,680 577.940 $131.740 In the Percy Division, cost of goods sold is $61,000 variable and $15.000 fixed, and operating expenses are $30,000 variable and $20,000 fixed. None of the Percy Division's food 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 usine either a negative sin preceding the number 8. -45 or parentheses es (451) Net Income Increase tv 1 0 6 7 8 R. E U Y w K . F G s D B N M . V X 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 $ Veronicas dtv A SA 4 20 . W 3 $ 4 OZ 8 9 5 6 7 C E T 0 R W Y G H D F J K S