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Emily has produced the following income statement for the ladies' shoe department of a large department store: Compared with other departments, the ladies' shoe department
Emily has produced the following income statement for the ladies' shoe department of a large department store: Compared with other departments, the ladies' shoe department has poor profitability. Management is considering dropping the department entirely. If the department is dropped, a job has to be created elsewhere for one employee who has been with the firm for many years. This employee has an annual salary of $46.500 and many years until retirement. Required: Calculate the increase or decrease in the operating income in both alternatives Should the shoe department be dropped? Yes No
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