Please do not give solution in image format thanku 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 PercyDivision is eliminated," she said, "our total profits would increase by $25,700."SalesCost of goods soldGross profitOperating expensesNet incomeSalesVariable costsCost of goods soldOperating expensesIn the Percy Division, cost of goods sold is $59,300 variable and $16,800 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.Total variableIs Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either anegative sign preceding the number e.g. -45 or parentheses e.g. (45).)Contribution marginFixed costsCost of goods soldOperating expensesTotal fixedThe OtherFive Divisions$1,663,000977,800Net income (loss)Veronica is685,200$526,900$158,300$PercyDivision$100,90076,10024,80050,500$(25,700 )Total$1,763,9001,053,900Continue710,000577,400$132,600$$Eliminate$$Net IncomeIncrease(Decrease)

Lets understand the basics.The cost may be separated into two categories: variable costs and fixed…

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 $25,700." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,663,000 977,800 Percy Division $100,900 76,100 685,200 24,800 526,900 50,500 $158.300 $(25.700 ) Total $1,763,900 1,053,900 710,000 577,400 $132.600

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 $25,700." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,663,000 977,800 Percy Division $100,900 76,100 685,200 24,800 526,900 50,500 $158.300 $(25.700 ) Total $1,763,900 1,053,900 710,000 577,400 $132.600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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