A guitar manufacturer is considering eliminating its electric guitar division be

Question

A guitar manufacturer is considering eliminating its electric guitar division because its $88,110 expenses are higher than its $81,600 sales. The company reports the following expenses for this division. Avoldable 59,500 9,250 Cost of goods sold Direct expenses Indirect expenses Service department costrs $2,250 2,650 1,830 830 11,800 Should the division be eliminated? Electric Guitar Division is: Sales Total expenses Net income (loss) Revenues from electric guitar division Avoid be 'penses Revenues are greater than (less than) avoidable expenses by

Explanation / Answer

Kept Eliminated Sales 81,600 Expenses: Cost of goods sold 59,500 Direct expenses 9,250 2,250 Indirect expenses 830 2,650 Service department costs 11,800 1,830 total expenses 81,380 6,730 Net income(loss) 220 -6,730 The electric guitar division should be : Kept

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.