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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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