A company is deciding whether or not to eliminate a segment of its business. The segment generates total sales of $104,000, its direct expenses are $22,000, and its indirect expenses are $26,000. Its cost of goods sold is $64,000. Six thousand dollars of the direct expenses and $8,000 of its indirect expenses are avoidable expenses. Which of the following is not true?

Selected Answer: e. This segment's revenue is greater than its avoidable costs.

Answers: a. None of the above

b. This segment has a net loss of $8,000.

c. This segment's avoidable costs are greater than unavoidable costs.

d. This segment is a good candidate for elimination.

e. This segment's revenue is greater than its avoidable costs.