Business
Business, 26.06.2019 22:00, lovly8914

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 $26,300.” the other five divisions percy division total sales $1,663,000 $101,000 $1,764,000 cost of goods sold 979,000 76,900 1,055,900 gross profit 684,000 24,100 708,100 operating expenses 528,100 50,400 578,500 net income $155,900 $ (26,300 ) $129,600 in the percy division, cost of goods sold is $60,400 variable and $16,500 fixed, and operating expenses are $29,000 variable and $21,400 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.

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