q27

Bugs Bunny Clothing Company operates a children's and women's department. The latest monthly income statement for each department and the company as a whole is shown below: Children's Women's Total Sales $150,000 $225,000 $375,000 COGS (100,000) (100,000) (200,000) Sales Commission (30,000) (22,500) (52,500) Contribution Margin 20,000 102,500 122,500 Store Rent and General Fixed Overhead Cost (25,000) (45,000) (70,000) Store Manager's Salary (10,000) (10,000) (20,000) Department Manager's Salary (5,000) (10,000) (15,000) Product Advertising (5,000) (7.500) (12,500) Net Income $(25,000) $30,000 $5,000 Bugs Bunny recently received an offer to sublease the space in the store that is currently being used by the children's department at a rate of $8,000 per month. What is your recommendation to Bugs Bunny? Support your recommendation numerically. Edit View Insert Format Tools Table 1201 Paragraph Tvou RA 3