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 $26.500." The Other Five Divisions $1,663,000 978,100 Percy Division $100,000 Sales 76,800 Total $1,763,000 1,054,900 708,100 578,700 684,900 Cost of goods sold Gross profit Operating expenses Net income 23,200 529.000 49.700 $155.900 $(26,500) $129,400 In the Percy Division, cost of goods sold is $60,500 variable and $16,300 fixed, and operating expenses are $29,100 variable and $20,600 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 (Decrease) Continue Eliminate Sales $ 0 o Variable costs Cost of goods sold o Operating expenses 0 Total variable 0 0 O Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed 0 Total variable 0 Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Veronica is