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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
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 $1,663,000 977,000 Percy Division $100,400 Total Sales $1.763,400 Cost of goods sold 76.200 1,053,200 686,000 24.200 710.200 Gross proht Operating expenses 528,400 49.900 578,300 Net income $157,600 $125,700) $131.900 In the Percy Division cost of goods sold is 559 100 variable and 517.100 fixed and operating expenses are $30.500 variable and 519.400 Foxed. 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 o negative sin preceding the number eg 45 or parentheseses (451) Net Income Increase (Decrease) Continue Eliminate Sales $ $ $ Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Cost of goods sold Operating expenses Total fixed Net income (loss) $ $ Veronica is
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