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A guitar manufacturer is considering eliminating its electric guitar division because its $101,360 expenses are higher than its $93,800 sales. The company reports the following
A guitar manufacturer is considering eliminating its electric guitar division because its $101,360 expenses are higher than its $93,800 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $ 71,000 Direct expenses 10,150 $ 2,750 Indirect expenses 980 2,250 Service department costs 11,400 2,830 Should the division be eliminated? (Any loss amount should be indicated with minus sign.)
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