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 Click if you would like to Show Work for this question: Open Show Work Exercise 7-15 (Video) 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 $27,100." The Other Percy Five Divisions Division $1,665,000 $100,100 978,700 76,700 686,300 23,400 528,700 50,500 $157,600 $ (27,100) Total $1,765,100 1,055,400 Sales Cost of goods sold Gross profit Operating expenses Net income 579,200 $130,500 In the Percy Division, cost of goods sold is $60,100 variable and $16,600 fixed, and operating expenses are $30,400 variable and $20,100 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 e.g. (45).)