01 ii. Goody Goody Limited is a retail store that has three departments, all in the same building. Each of these departments occupy 1/3 of the total area of the building. The latest financial results for these departments are as follows: 1 1 1 8 Department AA Department BB Department CC Total (000s) (000s) (000s) (000s) Sales 700 500 600 1,800 Variable costs 280 225 2521 7578 Fixed costs (shared 3008 300 300 900 equally between the three departments) Net profit/(Loss) 120 (25) 48 143 1 The CEO would like to put a proposal to close Department BB as it was making a loss. 1 1 1 1 1 111 11 0 Required: 1 Do you agree with the CEO's proposal? Justify your answer with calculations and explanation by considering both quantitative and qualitative factors. (6 marks)