Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Concord Company's six divisions. Veronica made the following presentation to Concord'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 $26,400." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,663,000 $100,400 977,200 77,000 685,800 23,400 528,500 49,800 $157,300 $ (26,400) Total $1,763,400 1,054,200 709,200 578,300 $130,900 In the Percy Division, cost of goods sold is $60,600 variable and $16,400 fixed, and operating expenses are $30,900 variable and $18,900 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. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales 100400 -100400 Variable costs Cost of goods sold 59400 59400 Operating expenses -30200 30200 Total variable -89600 89600 Contribution margin 10800 -10800 Fixed costs Cost of goods sold -17300 -17300 Operating expenses -19900 -19900 Total fixed -37200 -37200 Net income (loss) -37200 -10800