A guitar manufacturer is considering eliminating its electric guitar division because its $89,540 expenses are higher than its $83,790 sales. the company reports the following expenses for this division. Should the division be eliminated?

A guitar manufacturer is considering eliminating its electric guitar division because its $89,540 expenses are higher than its $83,790 sales. The company reports the following expenses for this division. Avoidable Unavoidable Expenses Expenses Cost of goods sold $ 61,000 Direct expenses 10,750 $2,650 Indirect expenses 1,850 Service department costs 11,200 1,530 560 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Direct expenses Indirect expenses Service department costs Cost of goods sold Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by Kept