The Footwear Department at the Orange Department Store is being considered for closure. The following information relates to footwear activity $381,000 202600 Sales revenue Variable costs: Cost of goods sold Sales commissions Fixed operating costs 301.000 37,000 93,000 I 90% of the fixed operating costs are avoidable, should the Footwear Department be closed? If 90% of the fixed operating costs are avoidable, should the Footwear Department be closed? Multiple Choice Yes, Orange would be better off by $50,000, Yes, Orange would be better off by $40,700. No, Orange would be worse off by $33,700. None of the answers is correct. No, Orange would be worse off by $43,000. 7 Cornwall Enterprises manufactures Nuts and Bolts from a joint process (costsas,000). Six thousand pounds of Nuts can be sold at spit off for $20 per pound, seventeenthousand pounds of Bolts can be sold at spit off for $15 per pound. For product costing purposes Comwall allocates joint costs using the relative sales value method The amount of joint cost allocated to Nuts would be Multiple Choice $27200 565.000 505.000 $10.000 192.000