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8 A guitar manufacturer is considering eliminating its electric guitar division because its $107700 expenses are higher than its $101,280 sales. The company reports the
8 A guitar manufacturer is considering eliminating its electric guitar division because its $107700 expenses are higher than its $101,280 sales. The company reports the following expenses for this division 66 Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $80,000 10,350 778 9, see $2,850 2,200 1.730 Boll Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Eliminated Kept 101.280 s B0.000 13200 2.050 2.200 Electric Guitar Division is: Sales Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses Nettoomne doss) Revenues from loctric guitar division Avoidable expenses Revenues are greater than less than avoidable expenses by - 93200 5.050
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