JLJLIUI JUI J -72 View Policies Current Attempt in Progress 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 $26.000 Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,663,000 979.000 684,000 526,800 $157,200 Percy Division $100,600 76,400 24,200 50.200 $(26,000) Total $1.763,600 1.055,400 708.200 577.000 $131.200 In the Percy Division, cost of goods sold is $60,500 variable and $15.900 fixed, and operating expenses are $30.000 variable and $20,200 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses es. (45)) Net Income Increase (Decrease) Continue Eliminate Sales $ $ $ Variable costs Cost of goods sold Operating expenses Total variable Net Income Increase (Decrease) Continue Eliminate Sales $ $ Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed $ Net income (loss) Veronica is Assistance Used e Textbook and Media Attempts: 0 of 5 used Submit Answer Save for Later