Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn'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 $25,900 The Other Percy Five Divisions Division Total $1,665,000 $100,600 $1,765,600 Sales 1,055,100 Cost of goods sold 978,500 76,600 Gross profit 710,500 686,500 24,000 Operating expenses 576,800 526,900 49,900 $159,600 $(25,900) $133,700 Net income In the Percy Division, cost of goods sold is $59,200 variable and $17,400 fixed, and operating expenses are $30,600 variable and $19,300 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase Continue Eliminate (Decrease) $ $ $ 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 incorrect correct