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The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity. $370,000 Sales revenue Variable
The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity. $370,000 Sales revenue Variable costs: Cost of goods sold Sales commissions Fixed operating costs. 296,000 32,000 90,000 If 80% of the fixed operating costs are avoidable, should the Boot Department be closed?
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