A guitar manufacturer is considering eliminating its electric guitar division because its $106,670 expenses are...
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A guitar manufacturer is considering eliminating its electric guitar division because its $106,670 expenses are higher than its $99,070 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $ 80,000 Direct expenses 11,050 $ 2,550 Indirect expenses 590 2,300 Service department costs 7,200 2,980 Should the division be eliminated?
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