Question
Should the company keep the ladies shoe department? Sales 1,500,00 Variable Exp 700,000 Fixed Wages 550,000 Fixed Advertising 200,000 Fixed Insurance on inventory 20,000 Net
Should the company keep the ladies shoe department?
Sales 1,500,00
Variable Exp 700,000
Fixed Wages 550,000
Fixed Advertising 200,000
Fixed Insurance on inventory 20,000
Net Operating Income $30,00
If the department is dropped, a job has to be created elsewhere for one employee who has been with the firm for many years.This employee has an annual salary of $40,000 and many years until retirement.
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Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
24th Edition
0538475005, 9780538475006
