Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the shoe department at the el paso department stor

The Shoe Department at the El Paso Department Store is being considered for closure. The...

90.2K

Verified Solution

Question

Accounting

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

Sales revenue $ 370,000
Variable costs:
Cost of goods sold 300,000
Sales commissions 33,000
Fixed operating costs 92,000

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

Yes, El Paso would be better off by $36,600.

Yes, El Paso would be better off by $55,000.

No, El Paso would be worse off by $18,600.

No, El Paso would be worse off by $37,000.

None of these.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Assume that human body temperatures are normally distributed with a mean of 98.2°F and a standard...

Physics
1.2K views

Define the following in plasma physics : 1- Larmor radius or Gyro- radius 2- Guiding-center 3- adiabatic invariants 4-...

Basic Math
1.2K views

Answer the correlation questions using the data below. Use ? = 0.05. x y 3.1 3.9 5.9 7.1 6.1 4.9 7.2 4.5 5.1 5.9 6.6 5.1 4.9 5.9 a) Compute the correlation. r =   b)...

Finance
1.2K views

Mortgage Loan Analysis: Mr. Davidson plans to buy a new house at Sugar Land in June...

Physics
1.2K views

d 2 1 3 Figure shows position and velocities of two particles moving under mutual...

Basic Math
1.2K views

1 Nathalie borrows C6500 lor a motorcycle The loan is for five years al 2...

Algebra
1.2K views

Use rational exponents to simplify the radical Assume the expression is defined 3 9 The...

Accounting
1.2K views

PR 2-1A Entries for costs in job order costing Marinja Company uses job order costing....

Accounting
1.2K views

Minist Corporation sells a single product for $10 per unit. Last year, the company's sales...

Accounting
1.2K views

Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy...

Accounting
1.2K views

Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used...

Finance
1.2K views

What other factors would you consider when designing the hedging strategy? Are there reasons to...