Question
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 $280,000
Sales Commissions $30,000
Fixed operating Costs $90000 If 70% of the fixed operating costs are avoidable, should the Shoe Department be closed?
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Internal Auditing Assurance & Consulting Services
Authors: Kurt F Reading, Paul J Sobel, Urton L Anderson, Michael J Head, Sri Ramamoorti
1st Edition
