Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Sheffield Company's six divisions. Veronica made the following presentation to Sheffield'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 $26,300." The Other Percy Five Divisions Division Total Sales $1,663,000 $101,000 $1,764,000 979,000 76,900 1,055,900 Cost of goods sold Gross profit 684,000 24,100 708,100 Operating expenses 578,500 528,100 50,400 $155,900 $ (26,300) Net income $ 129,600 In the Percy Division, cost of goods sold is $60,400 variable and $16,500 fixed, and operating expenses are $ 29,000 variable and $21,400 fixed. None of the Percy Division's 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. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 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) Veronica is