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A guitar manufacturer is considering eliminating its electric guitar division because its $89,450 expenses are higher than its $82,690 sales. The company reports the following

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A guitar manufacturer is considering eliminating its electric guitar division because its $89,450 expenses are higher than its $82,690 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 $ 59,500 10,450 620 11,800 $2,050 2,300 2,730 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: 005 Total expenses Net Income (los) Revenues from electric guitar division Avoldable expenses Revenues are greater than (less than) avoidable expenses by Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a cost of $120,500, and Rory can also receive $78,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $17,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)

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