A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher than its $93,900 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 $ 70,000 11,150 530 12,000 $ 2,750 1,750 1,580 Should the division be eliminated? Kept Eliminated 70,000 Electric Guitar Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by 2,750 1,750 1,580 6,080 70,000