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A guitar manufacturer is considering eliminating its electric guitar division because its $102,790 expenses are higher than its $96,330 sales. The company reports the following

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A guitar manufacturer is considering eliminating its electric guitar division because its $102,790 expenses are higher than its $96,330 sales. The company reports the following expenses for this division Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 74,000 11,150 710 10,200 $1,450 2,750 2,530 Should the division be eliminated? Kept Eliminated Electric Guitar Division is: 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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