QS 23-14 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 45% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales $ 275,000 Variable costs 155,000 Fixed costs Direct 36,000 Indirect 55,000 Operating loss $(29,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by 1-b. Based on this information, should the division be eliminated? Yes No