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 $25,700.

		The Other Five Divisions		Percy Division			Total
Sales		$1,663,000		$100,900			$1,763,900
Cost of goods sold		977,800		76,100			1,053,900
Gross profit		685,200		24,800			710,000
Operating expenses		526,900		50,500			577,400
Net income		$158,300		$ (25,700	)		$132,600

In the Percy Division, cost of goods sold is $59,300 variable and $16,800 fixed, and operating expenses are $30,400 variable and $20,100 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.