A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costa Avoidable Expenses $ 56,000 9,250 470 6,000 $1,250 1,600 1,430 Should the division be eliminated? Kept Eliminated Electric Guitar Division is: Sales Expenses: Total expenses Net Income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than Should the division be eliminated? Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by