The company reports the following expenses for this division. Should the division be eliminated?


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The company reports the following expenses for this division. Should the division be eliminated? 1 answer below » 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? View complete question » Cost of goods sold $55,000 Direct expenses 6,250 $2,250 Indirect expenses           & 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? Cost of goods sold $55,000 Direct expenses 6,250 $2,250 Indirect expenses 470 3,600 Service department costs 7,000 1,430 Tak Company has a machine with a book value of $50,000 and a remaining five-year useful life. A new machine is available at a cost of $75,000, and Tak can also receive $40,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $12,000 per year over its five-year useful life. Should the machine be replaced? View less » Jul 24 2014 07:50 AM

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