A guitar manufacturer is considering eliminating its electric guitar division because its $104,010 expenses are higher than its $97,000 sales. The company reports the following expenses for this division.

	Avoidable Expenses				Unavoidable Expenses
Cost of goods sold	$	72,500
Direct expenses		11,850			$	2,650
Indirect expenses		680				2,500
Service department costs		11,600				2,230

Should the division be eliminated? (Any loss amount should be indicated with minus sign.)

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21 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated 2.77 points Electric Guitar Division is: Sales Expenses: eBook References Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by