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 $ 26,600: The Other Five Divisions $1,664,000 978,000 Percy Division $ 100,000 Total $ 1.764,000 76.900 Sales Cost of goods sold Gross profit Operating expenses Net income 686,000 23.100 1,054,900 709,100 576,000 $ 133,100 49,700 526,300 $ 159,700 ${26,600 In the Percy Division cost of goods sold is $ 60,800 variable and $ 16,100 fixed and operating expenses are $ 31,600 variable and s 18,100 fwed. 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 eg. -45 or parentheses eg. (45)) Net Income Increase (Decrease) Continue Eliminate Sales 100400 $ 0 100400) Variable costs Cost of goods sold 60600 0 60600 Operating expenses 30900 0 30900 Total variable 91500 0 91500 8900 0 (8900) Contribution margin Fixed costs Cost of goods sold 16400 16400 0 Operating expenses OPE 18900 18900 Total fixed 35300 35300 Operating expenses 30900 0 30900 Total variable 91500 0 91500 Contribution margin 8900 0 (8900) Fixed costs Cost of goods sold 16400 16400 Operating expenses 18900 18900 0 Total fixed 35300 35300 Net income (loss) (26400) $ (35300) (8900) Veronica is Incorrect