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 $25,700." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,400 $1,763,400 Cost of goods sold Gross profit 977,000 686,000 528,400 76,200 24,200 49,900 1,053,200 710,200 578,300 Operating expenses Net income $157,600 $ (25,700) $131,900 In the Percy Division, cost of goods sold is $59,100 variable and $17,100 fixed, and operating expenses are $30,500 variable and $19,400 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. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).) Net Income Increase (Decrease) Continue Eliminate Sales 100400 - 100400 Variable costs Cost of goods sold 59400 -59400 Operating expenses 30200 -30200 Total variable -89600 89600 Contribution margin 10800 0 T - 10800 Fixed costs Cost of goods sold 17300 17300 Operating expenses 19900 19900 Total fixed 37200 37200 0 Net income (loss) 26400 37200 - 10800 Veronica is incorrect