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which values are incorrect here ?? Nicole Filippas, a recent graduate of Rollings University's accounting program, evaluated the operating performance of Poway Company's six divisions.
which values are incorrect here ??
Nicole Filippas, a recent graduate of Rollings University's accounting program, evaluated the operating performance of Poway Company's six divisions. Nicole made the following presentation to Poway's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $24.200. Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,664,000 977.900 686.100 528,500 $157,600 Erie Division $100,400 76,500 23.900 48.100 $(24,200) Total $1.764.400 1,054,400 710.000 576,600 $133,400 In the Erie division, the cost of goods sold is $60,600 variable and $15.900 fixed and operating expenses are $14,700 variable and $33,400 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Nicole right about eliminating the Erie Division? Prepare a schedule to support your answer. If an amount reduces the net income then enter with a negative sign preceding the numbereg.-15,000 or parenthesis, eg (15,0001) Is Nicole right about eliminating the Erle Division Prepare a schedule to support your answer of an amount reduces the net income then enter with a negative sin preceding the number es. -15.000 or parenthesse. (15.0001 Net Income Increase (Decreasel Continue Eliminate Sale 100.400 0 $ 100400 Variable costs 76.400 0 76400 Contribution margin 23 800 0 -23800 Fed costs 48.000 48.000 Net income los $ $ 48000 $ -23300 Nicole is Incorrect Step by Step Solution
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