Veronica Mars, a rcent graduate of Bell's accounting program, evaluated the operating performance of Dunn...
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Accounting
Veronica Mars, a rcent 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 $25,500." In the Percy Division, cost of goods sold is $60,000 variable and $16,600 fixed, and operating expenses are $30,700 variable and $18,900 fixed. None of the Percy Division's fixed costs will be eliminated it 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).) Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negotive amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Total variable : Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Netincome (loss) Veronica is
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