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Pam's Grocery Store has three departments-meat, canned food, and produce each of which has its own manager. All departmeots are housed in a single store.
Pam's Grocery Store has three departments-meat, canned food, and produce each of which has its own manager. All departmeots are housed in a single store. Recently, the produce department has been suffering a net loss and is expected to continue doing so. Last year's income statements follow: Sales Cost of goods sold Gross margin Departmental manager's salary Reoton store Jease Store utilities Other general expenses Net income (los) Meat Department $350,000 1160.000) 190.000 121.000) 140,000) ..110,000) 149,000 $70,000 Canned Food Department $ 320,000 (190.000) 139,009 115,000) 140,000) 110,000) 49,000) $ 16000 Produce Department $.237.500 (147.500) 90,000 (17.500) (40.000) (10.000) 149,000 $ (26,500) Required a. Determine whether to eliminate the produce department
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