A guitar manufacturer is considering eliminating its electric guitar division because its $94,140 expenses are higher than its $88,420 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses
Cost of goods sold $66,500
Direct expenses 11,950 $2,650
Indirect expenses 860 1,850
Service department costs 8,800 1,530

Should the division be eliminated?

Electric Division Should be Kept

Explanation:

Analysis of the decision is as follows :

                                                                  Kept                   Eliminated

Sales                                                      $72,000

Expenses :

Direct Expenses                                                                       $1,250

Indirect Expenses                                                                    $1,600

Service Department Costs                                                      $1,430

Cost of Goods Sold                              $56,000

Total Expenses                                     $56,000                   $4,280

Net Income (Loss)                                 $16,000                  ($4,280)

Conclusion :

Electric Division Should be Kept since it is contributing tp the whole company profit than its taking from it.

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

i really hope this answer you out! it makes my day people like you and giving back to the community that has me through school! if you could do me a favor, if this you and this is the very best answer and you understand that all of my answers are legit and top notch. mark as brainliest! and have a awesome day!