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please answer this question. THANKS... A guitar manufacturer is considering eliminating its electric guitar division because its $98,020 expenses are higher than its $91,020 sales.
please answer this question. THANKS...
A guitar manufacturer is considering eliminating its electric guitar division because its $98,020 expenses are higher than its $91,020 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 $ 72,500 11,350 590 6,200 $ 2,250 2,400 2,730 Should the division be eliminated? Kept Eliminated Electric Guitar Division is: Sales Expenses: Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses byStep by Step Solution
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