Veronica Mars, a recent graduate of Bells accounting program, evaluated the operating performance of Dunn Companys six divisions. Veronica made the following presentation to Dunns board of directors and suggested the Percy Division be eliminated. If the Percy Division is eliminated, she said, our total profits would increase by $26,300.

The Other Five Divisions Percy DivisionTotalSales$1,663,000$101,000$1,764,000Cost of goods sold979,00076,900 1,055,900Gross profit684,00024,100 708,100Operating expenses528,10050,400 578,500Net income$155,900$ (26,300)$129,600

In the Percy Division, cost of goods sold is $60,400 variable and $16,500 fixed, and operating expenses are $29,000 variable and $21,400 fixed. None of the Percy Divisions 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).)

		enter sales in dollars		enter sales in dollars		enter sales in dollars
		enter the cost of goods sold in dollars		enter the cost of goods sold in dollars		enter the cost of goods sold in dollars
		enter operating expenses in dollars		enter operating expenses in dollars		enter operating expenses in dollars
		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
		enter contribution margin in dollars		enter contribution margin in dollars		enter contribution margin in dollars
		enter the cost of goods sold in dollars		enter the cost of goods sold in dollars		enter the cost of goods sold in dollars
		enter operating expenses in dollars		enter operating expenses in dollars		enter operating expenses in dollars
		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
		enter net income or loss in dollars		enter net income or loss in dollars		enter net income or loss in dollars

select an option incorrectcorrect