ACCT 605 - Pre Final Assessment PARTA You are a retailer that has multiple departments. While analyzing the net income on a department by department level, you realize that one department is operating at a net loss. Determine whether shutting down the department makes sense and the estimated net impact to the business if this department is shut down: For 12 Months of Operations Dent A Dent B Dent Total $300,000 $350,000 $250,000 $900,000 204,000 297,500 137,500 639,000 $96,000 $52,500 $112,500 $261,000 Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries Utilities Depreciation Other Operating Profit (Loss) 28,000 6,000 5,000 5,000 $52,000 28,000 6,000 5,000 5,000 $8,500 28,000 6,000 5,000 5,000 $68,500 84,000 18,000 15,000 15,000 $129.000 Additional Information: a) Department Bis closed, their sales and cost of goods sold will drop to zero b) Since some customers shop at our store because we offer many different products, we estimate the foot traffic in the store will also drop. Therefore, we expect to lose $25,000 in sales between Dept A & C. The projected cost of goods sold on these forgone sales is 60% Complemented -Com Presentato pdf B.Com Presentatio pdf Eco Presented