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A guitar manufacturer is considering eliminating its electric guitar division because its $84,460 expenses are higher than its $77,040 sales. The company reports the

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A guitar manufacturer is considering eliminating its electric guitar division because its $84,460 expenses are higher than its $77,040 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs $ 58,500 10,150 680 7,400 $2,750 2,150 2,830 Should the division be eliminated? (Any loss amount should be Indicated with minus sign.) Electric Guitar Division is: Sales Expenses: Kept Eliminated 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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