Question $5$

Storeby Company has multiple business units. Unit $1$ has the following information:

Sales revenue: $$200,000$

Variable expenses: $140,000$

Fixed expenses: $100,000$

Fixed expenses, which are mostly represented by shared capacity costs $($e$.$g$.,$ rent, depreciation, etc. for the factory as a whole$),$ are allocated evenly to business units.

Harry, a manager within Storeby Company, is wondering whether Storeby Company should drop Unit $1.$

Which of the following statements are true? $($Check all that apply.$)$

The $$200,000$ in sales revenue is relevant.

If the fixed expenses are unavoidable, they are relevant.

The $$140,000$ in variable expenses is relevant.

If the fixed expenses are avoidable, they are relevant.