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Instructor: Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso Primer on Using Excel in Accounting by Rex A Schildhouse Date: Course: E23-8,...

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qattachments_364708919ef37c9cfd1239d89a816579956378f8.xlsx, Exercise E23-8, Page 1 of 1 Page(s), 04/05/201307:42:28 Name: Date: Instructor: Course: E23-8, Make incremental analysis for elimination of division. Total Sales \$1,664,200 \$98,200 \$1,762,400 Cost of goods sold 978,520 76,470 \$1,054,990 Gross profit 685,680 21,730 \$707,410 Operating expenses 527,940 38,600 \$566,540 Net income \$157,740 (\$16,870) \$140,870 In the Western Division, cost of goods sold is \$56,000 variable and \$20,470 fixed, and operating expenses are \$12,000 variable and \$26,600 fixed. None of the Western Division's fixed costs will be eliminated if the division is discontinued. Instructions: Is Sara right about eliminating the Western Division? Prepare a schedule to support your answer. Continue Eliminate Sales Amount Amount Formula Variable expenses Title Amount Amount Formula Title Amount Amount Formula Title Formula Formula Formula Contribution margin Formula Formula Formula Fixed expenses Title Amount Amount Formula Title Amount Amount Formula Total fixed Formula Formula Formula Net income (loss) Formula Formula Formula Enter text answer here. Accounting , Fourth Edition by Kimmel, Weygandt, and Kieso Primer on Using Excel in Accounting by Rex A Schildhouse Sara Casper, a recent graduate of Rolling’s accounting program, evaluated the operating performance of Klumpe Company’s six divisions. Sara made the following presentation to the Klumpe board of directors and suggested the Western Division be eliminated. “If the Western Division is eliminated,” she said, “our total profits would increase by \$16,870.” The Other Five Divisions Western Division Net Income Increase (Decrease)

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