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Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. s Veronica made the following presentation to

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Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. s 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 $ 26,100." Percy Division $ 100,300 Total The Other Five Divisions $ 1,664,000 977,900 Sales $1.764,300 76,300 1,054,200 Cost of goods sold Gross profit 686,100 24,000 710,100 Operating expenses 528,000 50,100 578,100 Net income $ 158,100 $ (26,100 $ 132,000 in the Percy Division, cast of goods sold is $59,300 variable and $ 17,000 fixed, and operating expenses are $31.600 variable and $ 18,500 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 counts tesing either a negative sign preceding the number ey 15 or parentheses es (45) Natcom Thereas (Recru) Continue Sales Variable costs Cost of goods sold Operating expense Total variable Contribution margin Fixed costs Cost of good old Operating expenses Total fixed Net neomeos) Veronicas

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