A guitar manufacturer is considering eliminating its electric guitar division because its $86,840 expenses are higher than its $81,720 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 $63,000 9,550 1,010 7,800 $1,450 1,650 2,380 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