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3. Schroeder Department Store has clothing, housewares, and cosmetics departments. Net income (or loss) for the departments is $13,000, $(1,000) loss, and $10,000, respectively.

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3. Schroeder Department Store has clothing, housewares, and cosmetics departments. Net income (or loss) for the departments is $13,000, $(1,000) loss, and $10,000, respectively. Operating expenses for the housewares department are $15,000, of which 40% are unavoidable. Should Schroeder automatically eliminate the housewares department? Why or why not? a. Yes, because it incurred a net loss of $1,000. b. Yes, because the store would save $9,000 of avoidable expenses. c. Yes, because its unavoidable expenses of $6,000 are less than its avoidable expenses of $9,000. d. No, because its revenues of $14,000 are greater than its unavoidable expenses of $6,000. e. No, because its revenues of $14,000 are greater than its avoidable expenses of $9,000.

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