Veronica Mars, a recent graduate of Bells accounting program, evaluated the operating performance of Dunn Companys six divisions. Veronica made the following presentation to Dunns board of directors and suggested the Percy Division be eliminated. If the Percy Division is eliminated, she said, our total profits would increase by $26,600.

		The Other Five Divisions		Percy Division			Total
Sales		$1,664,000		$100,000			$1,764,000
Cost of goods sold		978,000		76,900			1,054,900
Gross profit		686,000		23,100			709,100
Operating expenses		526,300		49,700			576,000
Net income		$159,700		$ (26,600	)		$133,100

In the Percy Division, cost of goods sold is $60,800 variable and $16,100 fixed, and operating expenses are $31,600 variable and $18,100 fixed. None of the Percy Divisions 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.

veronica Mars,a recent graduate of ell's accourting program, evaluated the operating performance of Dunn Company's six divisions Veronica made the following presentstion to Durns board of directors and supested the Percy Divisian be eliminsted. "f the Percy Division is eliminated,she said, cur total profits would increase 25,GOO. The Other Percy 1,664,000 $100,0 ,64,000 Cost of goods sold Gross profit 0C 000 23,100 9,700 576,000 Net income he perc, D isian cast of goods sad S60,8nd anable ard $16.100 fixed, and operating expenses are s31,600 vanable and $18,100 tied. None cr the percy vision a fixed casts will he eliminated if the diaan a disconti Ts Varonica right about limnating the Percy Divsion? Prepare a schodule to support your answer. (Enter negative amonts using cither a oegative sign preceding the oumber eg. -45 or parentheses e.g. (45).) arable coats Cost of aoods sold Operating expenses Total vanable Contribution marain Fred costs Coat of goods sold Opersting expenses Total fixed Net income (lass) Veronice