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undefined A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than it sales. The company reports the following
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A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than it sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 56,000 9,250 470 6,000 $1,250 1,600 1,430 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses byStep by Step Solution
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