The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity:

Sales revenue $ $410,000$

Variable costs:

Cost of goods sold $330,000$

Sales commissions $32,000$

Fixed operating costs $100,000$

If $80\%$ of the fixed operating costs are avoidable, should the Boot Department be closed?

Multiple Choice

No$,$ Omaha would be worse off by $$48,000$

Yes, Omaha would be better off by $$52,000$

No$,$ Omaha would be worse off by $$28,000$

None of the answers is correct

Yes, Omaha would be better off by $$32,000$