Jamaican Supplies (JS) has three major departments: electronics, housewares, and office furniture. Recent financial data are shown

Fantastic news! We've Found the answer you've been seeking!

Question:

Jamaican Supplies (JS) has three major departments: electronics, housewares, and office furniture. Recent financial data are shown below: Electronics Housewares Office furniture Sales $2,280,000 $2,760,000 $840,000 Variable costs 1,368,000 1,932,000 672,000 Fixed costs 336,000 450,000 270,000 Management is deciding whether to drop the office furniture department. If dropped, the following changes are expected to occur: The vacated space will be remodelled as an addition to housewares at a cost of $148,800. Sales of housewares are expected to increase by $600,000; in addition, CM will increase by 6% on this incremental revenue. JS can avoid 30% of the fixed costs allocated to office furniture. JS will increase advertising by $100,000 to promote the new housewares products. Customers who purchased office furniture often purchased electronics as well; electronics sales are expected to fall by 15%. What will the change to the income or loss from closing the office furniture department be? Question 15 options: a) $472,600 loss b) $256,600 loss c) $148,600 loss d) $168,000 loss