A guitar manufacturer is considering eliminating its electric guitar division because its $88,110 expenses are...
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A guitar manufacturer is considering eliminating its electric guitar division because its $88,110 expenses are higher than its $81,600 sales. The company reports the following expenses for this division. Avoldable 59,500 9,250 Cost of goods sold Direct expenses Indirect expenses Service department costrs $2,250 2,650 1,830 830 11,800 Should the division be eliminated? Electric Guitar Division is: Sales Total expenses Net income (loss) Revenues from electric guitar division Avoid be 'penses Revenues are greater than (less than) avoidable expenses by
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