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A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following

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A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following expenses for this division. Unavoidable Expenses Avoidable Expenses $ 60,500 9,850 Cost of goods sold Direct expenses Indirect expenses Service department costs 770 $ 2,650 1,800 1,480 9,400 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by Cost of goods sold Direct expenses Indirect expenses Service department costs VUIUDDIN Venses

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