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

Sales revenue	$	370,000
Variable costs:
Cost of goods sold		292,000
Sales commissions		35,000
Fixed operating costs		95,000

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

A. None of the answers is correct.

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

C. Yes, Omaha would be better off by $33,000.

D. No, Omaha would be worse off by $24,000.

E. Yes, Omaha would be better off by $52,000.