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

Sales revenue $ $381,000$

Variable costs:

Cost of goods sold $301,000$

Sales commissions $37,000$

Fixed operating costs $93,000$

If $90\%$ of the fixed operating costs are avoidable, should the Boot Department be closed?

Multiple Choice

Yes, Omaha would be better off by $$40,700$

Yes, Omaha would be better off by $$50,000$

No$,$ Omaha would be worse off by $$33,700$

No$,$ Omaha would be worse off by $$43,000$

None of the answers is correct