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? $ 270,000 140,000 Sales Variable costs Fixed costs Direct Indirect Operating loss 31,000 56,000 $ (43,000) 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