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The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity: $352,000 Sales revenue Variable costs:
The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity: $352,000 Sales revenue Variable costs: Cost of goods sold Sales commissions Fixed operating costs 282,000 32,000 92,000 If 80% of the fixed operating costs are avoidable, should the Boot Department be closed? Multiple Choice Yes, Omaha would be better off by $35,600. Yes, Omaha would be better off by $54,000. No, Omaha would be worse off by $19,600. No, Omaha would be worse off by $38,000 None of the answers is correct
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