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A guitar manufacturer is considering eliminating its electric guitar division because its $90,540 expenses are higher than its $84,450 sales. The company reports the following
A guitar manufacturer is considering eliminating its electric guitar division because its $90,540 expenses are higher than its $84,450 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $64,500 10,950 860 7,800 $1,850 1,900 2,680 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) 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
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