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A guitar manufacturer is considering eliminating its electric guitar division because its $95,360 expenses are higher than its $89,630 sales. The company reports the

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A guitar manufacturer is considering eliminating its electric guitar division because its $95,360 expenses are higher than its $89,630 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $69,500 Direct expenses 10,350 $1,950 Indirect expenses ok Service department costs 530 9,000 2,350 1,680 nt ences 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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