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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%

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 information, should the division be eliminated?
1-a: Compare the amounts of total revenues and total avoidable expenses.
1-b: Based on this information, should the division be eliminated? image text in transcribed
image text in transcribed
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? $ 260,000 188,500 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 65,000 $ (32,500) 1-o. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated? Complete this question by entering your answers in the tabs below. Required 1A Required 10 Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by Required 1B > 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? $ 260,00 188,500 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 65.000 $ (32,500) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information should the division be eliminated? ces Complete this question by entering your answers in the tabs below. Required 1A Required 15 Based on this information should the division be eliminated? Based on this information should the division be eliminated?

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