A bike maker is considering eliminating its Tandem Bike division as it reports the following loss for the year. All \(\$ 30,000\) of its variable costs are avoidable, and \(\$ 12,000\) of its fixed costs are avoidable. Determine whether the division should be eliminated.

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Sales Variable costs Contribution margin Fixed costs Income (loss) Tandem Bike $40,000 30,000 10,000 16,000 $ (6,000)