Question

Item28 eBook Print References Check my work Check My Work button is now enabledItem 28 Item 28 A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $ 56,000 Direct expenses 9,250 $ 1,250 Indirect expenses 470 1,600 Service department costs 6,000 1,430 Should the division be eliminated?

Answer 1

eliminate heep $ 72.000 & 12so & 1600 $ 1430 cm.swed pankiculars Sales lepense Direct expense indirect expense Service Department expenses Cost of Goods sold Total Capenses Nex income I loss Bevenue forom the electronic Guizat division The Avoidable expenses Revenus is greater than so the avoidabie expenses by the & losoo * 2070 & 7430 & S6000 8 76000 (& 6ooo) & 4200 ($4280) $ 72000 & 71720 & Go $200 it would be better to heep rather than to eliminake the produck Thank you Please be comment if you have any double in it