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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
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, 100." in the Perry Division, cost of goods sold is $59, 300 variable and $17,000 fixed, and operating expenses are $.11, 600 variable and $18, 500 fixed. None or the Perry Division's fixed costs will be eliminated in 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).)
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