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

Sales revenue	$	372,000
Variable costs:
Cost of goods sold		299,000
Sales commissions		30,000
Fixed operating costs		91,000

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

Multiple Choice

• Yes, Omaha would be better off by $29,800.

• Yes, Omaha would be better off by $48,000.

• No, Omaha would be worse off by $24,800.

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

• None of the answers is correct.