Avoldable Expenses Unavoldable Expenses Cost of goods sold.... Direct expenses ... $56,000 9,250 $1,250 Indirect expenses 470 1,600 Service department costs. 6,000 1,430

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.3C
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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 be eliminated?

Avoldable Expenses
Unavoldable Expenses
Cost of goods sold....
Direct expenses ...
$56,000
9,250
$1,250
Indirect expenses
470
1,600
Service department costs.
6,000
1,430
Transcribed Image Text:Avoldable Expenses Unavoldable Expenses Cost of goods sold.... Direct expenses ... $56,000 9,250 $1,250 Indirect expenses 470 1,600 Service department costs. 6,000 1,430
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