Please show work, having a hard time finding the ones marked in red....
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Please show work, having a hard time finding the ones marked in red. Thank you
A guitar manufacturer is considering eliminating its electric guitar division because its $92,580 expenses are higher than its $86,690 sales. The company reports the following expenses for this division Avoidable Expenses Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs $68,000 $2,150 1,750 2,230 9,750 500 8,200 Should the division be eliminated? Answer is not complete. Kept $ 86,690 Eliminated Electric Guitar Division is: Sales Expenses Cost of goods sold 68,000 2,150 1,750 2,230 6,130 Direct expenses 9,750 500 8,200 86,450 Indirect expenses Service department costs Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses
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