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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:
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 OGStep by Step Solution
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