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Question 5 of 6 -/3 View Policies Current Attempt in Progress Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of
Question 5 of 6 -/3 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. If the Percy Division is eliminated' she said, "our total profits would increase by $26 200N Sales Cost of goods sold Gross profit Operating experies Net Income The Other Five Divisions $1663.000 978600 684.400 526.000 5158 400 Percy Division $100 100 76.800 23,300 49,500 $(26200 Total $1.763.100 1,055,400 707,700 575,500 $132.200 In the Percy Division cost of goods sold is 559,300 variable and $17.500 foved and operating expenses are $31400 variable and $18 100 fred. None of the Percy Division's feed costs will be eliminated the vision is discontinued Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts uding either a negative sin preceding the number as 45 or parentheses (450) Netlacone Increase Decrease) Continue Eliminate Sales $ Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fored costs Cost of goods sold Operating expenses News) 5 Veronicals Textbook and Media Atems Dead S
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