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The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity: Sales revenue Variable costs: $380,000
The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity: Sales revenue Variable costs: $380,000 Cost of goods sold 294,000 Sales commissions Fixed operating costs 36,000 93,000 If 70% of the fixed operating costs are avoidable, should the Boot Department be closed? Multiple Choice No, Omaha would be worse off by $50,000. Yes, Omaha would be better off by $43,000. Yes, Omaha would be better off by $15,100. None of the answers is correct. No, Omaha would be worse off by $22,100
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