Based on the segment income statement below, Chips, Incorporated is considering eliminating its Barbecue Division line.

Revenue from Barbecue Division sales	$ 520,000
Salaries for Barbecue Division workers	(120,000)
Direct material	(330,000)
Sunk costs (equipment depreciation)	(80,000)
Allocated company-wide facility-sustaining costs	(60,000)
Net loss	$ (70,000)

If the Division is eliminated, what is the total amount of avoidable cost?

Multiple Choice

$540,000.

$530,000.

$580,000.

$450,000.