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The Shoe Department at the Baton Rouge Department Store is being considered for closure. The following information relates to shoe activity: Sales revenue $350,000 Variable

The Shoe Department at the Baton Rouge Department Store is being considered for closure. The following information relates to shoe activity:

Sales revenue $350,000

Variable costs:

Cost of goods sold 282,000

Sales commissions 34,000

Fixed operating costs 96,000

70% of the fixed operating costs are avoidable. Should the Shoe Department be closed, the Baton Rouge's net income would be better off by?

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