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Frisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because...

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Accounting

Frisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because its $96,650 expenses are higher than its $90,750 sales. The company reports the following expenses for this division.

Avoidable Expenses Unavoidable Expenses
Cost of goods sold $ 68,000
Direct expenses 10,650 $ 1,350
Indirect expenses 770 1,900
Service department costs 11,000 2,980

Should the division be eliminated?

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