This is the question with the answer sheet

QUESTION 2 - CONTINUE OR ELIMINATE Judy Jean, a recent graduate of Rolling's accounting program, evaluated the operating performance of Artie Company's six divisions. Judy made the following presentation to Artie's board of directors and suggested the Huron Division be eliminated. "If the Huron 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 Huron Division $100,000 76,000 24,000 50,000 $(26,000) Total $1,764,200 1,054,520 709,680 577,940 $ 131,740 In the Huron Division, cost of goods sold is $61,000 variable and $15,000 fixed, and operating expenses are $26,000 variable and $24,000 fixed. None of the Huron Division's fixed costs will be eliminated if the division is discontinued. Instructions Is Judy right about eliminating the Huron Division? Prepare a schedule to support your answer. QUESTION 2 - CONTINUE OR ELIMINATE 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) Prepare the schedule above to support your answer. Is Judy right about eliminating the Huron Division? Why