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. Should the division beeliminated?

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Avoldable Expenses Unavoldable Expenses Cost of goods sold.... Direct expenses.N Indirect expenses Service department costs $55,000 6.250 470 7.000 $2,250 3,600 1.430