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Yor answer is partially correct. Debra Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Debra made
Yor answer is partially correct. Debra Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Debra made the following presentation to Cullumber's board of directors and suggested the Percy Division be eliminated. "If che Percy Division is eliminated," she said, "our total profits would increase by $26,200." In the Percy Division, cost of goods sold is $59,300 variable and $17,500 fixed, and operating expenses are $31,400 variable and $18,100 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Debra 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).) Net Income Continue Eliminate Increase (Decrease) Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold \begin{tabular}{|l|l|} \hline 17500 & i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & 17500 i \\ \hline \end{tabular} $100100 Variable costs Cost of goods sold Operating expenses ontribution margin Fixed costs Operating expenses Total fixed Net income (loss) Debra is incorrect
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