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ances A guitar manufacturer is considering eliminating its electric guitar division because its $89,050 expenses are higher than its $83,830 sales. The company reports
ances A guitar manufacturer is considering eliminating its electric guitar division because its $89,050 expenses are higher than its $83,830 sales. The company reports the following expenses for this division. Cost of goods sold Direct expenses Indirect expenses Service department costs Unavoidable Expenses Avoidable Expenses $62,000 9,950 $1,450 770 10,800 2,150 1,930 Should the division be eliminated? (Any loss amount should be Indicated with minus sign.) Cost of goods sold Direct expenses Indirect expenses Service department costs Total avoidable expenses Revenues from electric guitar division Revenues are greater than (less than) avoidable expenses by Should the electric guitar division be Avoidable expenses
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