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Question 4 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn C the following presentation to Dunn's board of
Question 4 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn C the following presentation to Dunn's board of directors and suggested the Percy Division be elminated. If the Percy Division is eliminated, "our total profits would increase by $26,500. ompany's six divisions. Veronica made she said, The Five Divisions Division Other Percy Total $1,663,000 $100,000 $1,763,000 Sales Cost of goods sold Gross profit Operating expenses Net income 978,100 76,800 1,054,900 684,900 23, 529,000 49,700 578,700 20p 708,100 $155,900 $(26,500) $129,400 In the Percy Division, cost of goods sold is $60,500 variable and $16,300 fixed, and operating expenses are $29,100 variable and $20,600 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 eg. (45)) Net Income
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