Ruth Lewis, a recent graduate of Page University's accounting program, evaluated the operating performance of Novak Company's six divisions. Ruth made the following presentation to Novak'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 $ 23,400." The Other Five Divisions $ 1,663,500 Erie Division $ 100,900 Total $ 1,764,400 Sales 977,400 76,500 1,053,900 686,100 24.400 710.500 Cost of goods sold Gross profit Operating expenses Net Income 529.000 47,800 576,800 $157.100 ${23,400) $133.700 In the Erie division, the cost of goods sold is $ 60,200 variable and $ 16,300 fixed, and operating expenses are $ 15,800 variable and $ 32.000 fixed. None of the Eredivision's hxed costs will be eliminated if the division is discontinued. Operating expenses 524,000 $ 157.100 Net Income $(23,400) $ 133,700 In the Erie division, the cost of goods sold is $ 60,200 variable and $ 16,300 fixed, and operating expenses are $ 15,800 variable and $ 32,000 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Ruth 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 4.8. - 15,000 or parenthesis, e.g. (15,000).) Net Income Increase (Decrease) Continue Eliminate Fixed costs Contribution margin Net incomo /(10) Sales Variable costs Ruth is