Answer Happy

Ruth Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Sunland Company's six divisions. Ruth made the following presentation to Sunland'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 $26,100 The Other Five Divisions Percy Division Total Sales $1,664,000 $100,300 $1,764,300 Cost of goods sold 977,900 76,300 1,054,200 Gross profit 686,100 24,000 710,100 Operating expenses 528,000 50,100 578,100 Net income $158,100 $(26,100 $132.000 In the Percy Division, cost of goods sold is $59.300 variable and $17.000 fixed and operating expenses are $31,600 variable and $18.500 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued Is Ruth right about eliminating the Percy Division Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number eg. 45 or porentheses (451)
Is Ruth right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses es: (45)) 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) $ LA $ Ruth is