Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six

divisions. Sharon made the following presentation to Carla Vista'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 $$25,300."$

In the Percy Division, cost of goods sold is $$60,100$ variable and $$16,400$ 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 Sharon 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 e$.$g$.(45).)$

Operating expenses

total vairable

contribution margin

fixed costs

costs of goods sold

operating expenses

total fixed

net income loss