The boot department at the omaha department store is being considered for closure. the following information relates to boot activity: sales revenue $ 350,000 variable costs: cost of goods sold 280,000 sales commissions 30,000 fixed operating costs 90,000 if 70% of the fixed operating costs are avoidable, should the boot department be closed?

Yes, Omaha department store would be better off by $23000.

Explanation:

Given: Sales revenue= $350000.

           Cost of goods sold= $280000.

           Sales commission= $30000.

           Fixed operating cost= $90000.

Now, computing net profit or (loss)

Net profit/loss=

∴ Net profit/loss=

⇒ Net profit/loss=

∴ Net loss=

∴ Yes boot department should be closed, as Omaha department store is better off by $23000.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number