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Thank you A guitar manufacturer is considering eliminating its electric guitar division because its $97,400 expenses are higher than its $92,240 sales. The company reports

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A guitar manufacturer is considering eliminating its electric guitar division because its $97,400 expenses are higher than its $92,240 sales. The company reports the following expenses for this division. Avoidable Unavoidable Expenses Cost of goods sold Expenses $ 70, 000 Direct expenses 11, 150 $1, 850 Indirect expenses 770 2, 100 Service department costs 10, 000 1, 530 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales to 92,240 Expenses: Cost of goods sold 70,000 Direct expenses 1,850 Indirect expenses 2, 100 Service department costs 1,530 Total expenses 70,000 5,480 Net income (loss) Revenues from electric guitar division Avoidable expenses 91,920 Revenues are greater than (less than) avoidable expenses by Kept

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