QS 23-12 Segment elimination LO P4

A guitar manufacturer is considering eliminating its electric guitar division because its $90,410 expenses are higher than its $83,690 sales. The company reports the following expenses for this division.

	Avoidable Expenses				Unavoidable Expenses
Cost of goods sold	$	64,500
Direct expenses		11,050			$	2,550
Indirect expenses		830				1,700
Service department costs		7,000				2,780

Should the division be eliminated? (Any loss amount should be indicated with minus sign.)