Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide a detailed explanation as I'm trying to understand: In this general store, we have two departments cosmetics and other goods (OG). Cosmetics had

Please provide a detailed explanation as I'm trying to understand:

image text in transcribed

In this general store, we have two departments cosmetics and other goods (OG). Cosmetics had a contribution margin of $159,500, OG had a contribution margin of $23,200. Forty percent of the rent of $120,000 is charged to OG. If we close OG, we can sublet the space and receive an income of $18,000 for it. Should we close OG? It does not matter because Losses will remain the same if we close OG O Cannot be determined from the information given No because Losses will increase by 5,200 if we close OG Yes because Losses will decrease by 5,200 if we close OG

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services A Systematic Approach

Authors: William F. Messier

6th Edition

0073526908, 9780073526904

More Books

Students also viewed these Accounting questions

Question

What are some key controls over payroll?

Answered: 1 week ago

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago