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A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are...

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Accounting

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A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher than its $81,320 sales. The company reports the following expenses for this division. Unavoidable Avoidable Expenses $ 59,500 9,350 Expenses Cost of goods sold Direct expenses Indirect expenses $2,750 2,000 2,480 860 Service department costs 11,400 Should the division be eliminated? Electric Guitar Division is: ept Eliminated Sales Expenses: Total expenses Net income (loss) woruoouqooI Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by

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