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 $26,400.

		The Other Five Divisions		Percy Division			Total
Sales		$1,663,000		$100,400			$1,763,400
Cost of goods sold		977,900		76,700			1,054,600
Gross profit		685,100		23,700			708,800
Operating expenses		526,800		50,100			576,900
Net income		$158,300		$ (26,400	)		$131,900

In the Percy Division, cost of goods sold is $59,400 variable and $17,300 fixed, and operating expenses are $30,200 variable and $19,900 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)