A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 50% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated?

Sales- 260,000

Variable costs- 1460,000

Fixed Costs

Direct- 31,000

Indirect- 55,000

Operating Loss- -28,000

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

Revenues-

Aviodable expenses-

Revenues are greater than (less than) avoidable expenses by-