QS 25-12 Segment elimination LO P4 A guitar manufacturer is considering eliminating its electric guitar division because its $85,980 expenses are higher than its $80,060 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 56,500 11,850 950 10,400 $1,950 2,350 1,980 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by Kept Eliminated