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A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following
A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $ 56,000 Direct expenses 9,250 $ 1,250 Indirect expenses 470 1,600 Service department costs 6,000 1,430 Should the division be eliminated?
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