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A guitar manufacturer is considering eliminating its electric guitar division because its $83.560 expenses are higher than its $77.240 sales. The company reports the following
A guitar manufacturer is considering eliminating its electric guitar division because its $83.560 expenses are higher than its $77.240 sales. The company reports the following expenses for this division Avoidable Expenses Unavoidable Expenses Cost of goods sold Direct pensee Indirect expenses Service department conte 9.350 $2,450 2.300 7.600 Should the division be eliminated? Electric Guitar Division is kept 77,240 Eliminated 59,000 Cost of goods sold Direct expenses Indirect expenses | Service department costs Total expenses Net income foss) Revenues from electric guitar division Avoidable expenses Revenues are greater than dess thanavoidable expenses by 77240
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