Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Veronica made the following presentation to Carla Vista'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 $25,300. Sales Cost of goods sold Gross profit Operating expenses Net income Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin The Other Five Divisions $1,663,000 Fixed costs 11 978,400 684,600 $ 528,500 $156,100 Percy Division $100,900 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 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).) 76,500 24,400 49,700 $(25,300 ) Continue Total $1,763,900 1,054,900 709,000 $ 578,200 $130,800 Eliminate Net Income Increase (Decrease)

Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company/s six divisions. Veronica made the following presentation to Carla Vista's board of directors and sugsested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300 : In the Percy Division, cost of goods sold is $60,100 variable and $16,400 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 answet. (Enter negative amounts usina either a negative sign preceding the number e..-45 or parentheies es. (45).)