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A guitar manufacturer is considering eliminating its electric guitar division because its $98,870 expenses are higher than its 591760 sales. The company reports the following

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A guitar manufacturer is considering eliminating its electric guitar division because its $98,870 expenses are higher than its 591760 sales. The company reports the following expenses for this division Cost of goods sold Direct expenses Yedirect expenses Service depannt coat voidable xpensen 5 73,500 9.950 590 7.400 Unavoidable expenses $2.450 2,100 2.000 Should the division be eliminated? Kept Eliminated $ 91.780 Electric Guitar Division in: Sales Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses Not income foss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by 73,500 9,950 590 74,900 158,940 $ (67,180) $ 91.700 242,980 $ 151.220 The electric guitar division should be: Eliminated

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