A guitar manufacturer is considering eliminating its electric guitar division because its $97,400 expenses are higher than its $92,240 sales. The company reports the following expenses for this division.

Electric Guitar Divisions Kept Eliminated

Sales ______ ____________

Expenses:

Cost of goods _______ ____________

Direct Expenses ________ ____________

Indirect expenses ________ ____________

Service department costs _________ ____________

Total expenses ___________ _____________

Net income (loss) ____________ _____________

Revenues from electric guitar division ___________ __________

Avoidable Expenses _______________ __________

Revenues are greater than (less than)

avoidable expenses by _______________ ____________