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 $27,000."

In the Percy Division, cost of goods sold is $60,000 variable and $16,800 fixed, and operating expenses are $30,800 variable and $19,700 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?

Safari File Edit View History Bookmarks Window Help D Q 8 0 Wed May 11 8:20 PM .. . I ~ ho B education.wiley.com C + 88 Home | iCampus W NWP Assessment Builder UI Application W NWP Assessment Player UI Application *Course Hero Items - Week 6 - Homework: Chapter 7 Question 10 of 10 - /1.5 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 $27,000." The Other Percy Five Divisions Division Total Sales $1,663,000 $100,300 $1,763,300 Cost of goods sold 978,700 76,800 1,055,500 Gross profit 684,300 23,500 707,800 Operating expenses 527,700 50,500 578,200 Net income $156,600 $ (27,000 $129,600 In the Percy Division, cost of goods sold is $60,000 variable and $16,800 fixed, and operating expenses are $30,800 variable and $19,700 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 Decreacal WSafari File Edit View History Bookmarks Window Help D Q 8 0 Wed May 11 8:20 PM .. . I ~