Data from the departmental income statement of Lake Jenny Inc. for the year ended December 31, 2019, is given below. Assuming that a department€™s direct expenses can be eliminated if it is closed, what factors should management consider when deciding whether to close Department 1?

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Lake Jenny Inc. Income Statement (Partlal) For Year Ended December 31, 2019 Department 1 |4 00000 280000 120000 |7 4000 46000 55000 190001 Total Department 2 Net Sales 1100000 Cost of Goods Sold Gross Profit on Sales Direct Expenses Contribution Margin Indirect Expenses Net Income (Loss) 00000L 420000 280000 117000 163000 88000 75000 이000014 |4|01010010이 191000 209000 143000 66000