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Business, 19.04.2021 15:30 amandaestevez030

A guitar manufacturer is considering eliminating its electric guitar division because its $94,140 expenses are higher than its $88,420 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses
Cost of goods sold $66,500
Direct expenses 11,950 $2,650
Indirect expenses 860 1,850
Service department costs 8,800 1,530

Should the division be eliminated?

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