A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales $ 200,000 Variable costs 145,000 Fixed costs Direct 30,000 Indirect 50,000 Operating loss $ (25,000 )

1-a. Compare the amounts of total revenues and total avoidable expenses.

1-b. Based on this information, should the division be eliminated?