QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40 % of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales 270,000 149,000 Variable costs Fixed costs Direct 32,000 56,000 $ (33,000) Indirect Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues Avoidable expenses Revenues are greater than (ess than) avoidable expenses by 203 400 es