A guitar manufacturer is considering eliminating its electric guitar division because its $94,500 expenses are higher than its $87,510 sales. The company reports the following expenses for this division.

Avoidable Expenses Unavoidable Expenses

Cost of goods sold $ 66,500

Direct expenses 11,450 $ 2,450

Indirect expenses 470 2,250

Service department costs 8,800 2,580

1. Should the division be eliminated?