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."$

In the Percy Division, cost of goods sold is $$60,800$ variable and $$16,100$ fixed, and operating expenses are $$31,600$ variable and

$$18,100$ 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$.(45).)$

Veronica is