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Betty Harris, a recent graduate of Uli University's accounting program, evaluated the operating performance of...

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Accounting

image Betty Harris, a recent graduate of Uli University's accounting program, evaluated the operating performance of Oriole Company's six divisions. Betty made the following presentation to Oriole's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $23,900." In the Erie division, the cost of goods sold is $60,600 variable and $15,400 fixed, and operating expenses are $14,100 variable and $33,900 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Betty right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000).)

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