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View History Bookmarks People Window Help X Hilary S. Ashmen Faculty Home X + dugen.wileyplus.com/edugen/student/mainfr.uni Assignment Gradebook ORION Downloadable eTextbook ent CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK NEXT Exercise 20-15 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 $26,600." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division Total $1,663,000 $100,400 $1,763,400 978,800 76,900 1,055,700 684,200 23,500 707,700 526,200 50,100 576,300 $158,000 $ (26,600) $131,400 In the Percy Division, cost of goods sold is $59,300 variable and $17.600 fixed, and operating expenses are $29,200 variable and $20,900 foxed. 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... (45).) Net Income Increase (Decrease) Continue Eliminate Sales $ Variable costs Cost of goods sold Operating expenses acy Policy 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of lobo W sync Version 4.24.194 MacBook 11 F2 F3 F4 F5 76 F7 FB Pop JS Hilary 8. Ashman Faculty Home + s://edugen.wileyplus.com/edugen/student/mainfr.uni Practice Assignment Gradebook ORION Downloadable Textbook Ignment CALCULATOR FULL SCREEN PRINTER VERSION 4 BAC s 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 Question Attempts: Unlimited SAVE FOR LATER SUBMIT AN vacy Policy | 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Versio 90 92100 BEU MacBook