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Help Save & Exit The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity. Sales
Help Save & Exit The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity. Sales revenue Variable costs: Cost of goods sold Sales commissions Fixed operating costs $363,000 290,000 32,000 93,000 If 80% of the fixed operating costs are avoidable, should the Boot Department be closed? Multiple Choice Yes, Omaha would be better off by $33,400. None of the answers is correct No, Omaha would be worse off by $41,000. Multiple Choice Yes, Omaha would be better off by $33,400. None of the answers is correct. No, Omaha would be worse off by $41,000. Yes, Omaha would be better off by $52,000. No, Omaha would be worse off by $22,400
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