A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 45% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales $ 260,000 146,000 Variable costs Fixed costs Direct Indirect 35,e00 55,000 $ (24,000) Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues S 260,000 Avoidable expenses Revenues are greater than (less than) avoidable expenses by Rory Company has a machine with a book value of $119,000 and a remaining five-year useful life. A new machine is available at a cost of $123,500, and Rory can also receive $77,000 for trading in its old machine. The new machine will reduce variable manufacturing Costs by $21,000 per year over its five-year useful life. Calculate the incremental Income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine es Incremental income (incremental cost)