Maurice Tutor

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Category > Management Posted 29 Apr 2018 My Price 4.00

electric guitar division

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?

 

Avoidable Expenses                        Unavoidable Expenses

 

Cost of goods sold . . . . . . . . . . . . . .           $55,000

 

Direct expenses . . . . . . . . . . . . . . . .           6,250                                                                    $2,250

 

Indirect expenses . . . . . . . . . . . . . . .           470                                                                       3,600

Service department costs . . . . . . . . .        7,000                 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Apr 2018 09:04 PM My Price 4.00

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