A guitar manufacturer is considering eliminating its electric guitar division because its $87,550 expenses are higher than its $80,740 sales. The company reports the following expenses for this division.

	Avoidable Expenses				Unavoidable Expenses
Cost of goods sold	$	62,000
Direct expenses		9,850			$	2,550
Indirect expenses		770				1,800
Service department costs		7,800				2,780

Should the division be eliminated?

Electric guitar division is:	Kept	Eliminated
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