FG Department Store has three major departments:  groceries, general merchandise, and drugs.  Management is considering dropping groceries, which have consistently shown a net loss.  The following table reports the present annual net income (in thousands).   DEPARTMENTS    Groceries General merchandise Drugs Total Sales Br. 1,000 Br. 800 Br. 100 1,900 Variable COGS* & Expenses           800      560 60 1,420 Contribution margin Br. 200 Br. 240 Br. 40 Br. 480 Fixed expenses:        Avoidable Br. 150 Br. 100 Br. 15 Br. 265    Unavoidable        60       100      20      180 Total fixed expenses Br. 210 Br. 200 Br. 35 Br. 445 Operating income (loss) Br. (10) Br. 40 Br. 5 Br. 35 *COGS denote cost of goods sold. Instructions: Which alternative would you recommend if the only alternatives to be considered are dropping or continuing the grocery department?  Assume that the total assets would be unaffected by the decision and the space made available by dropping groceries would remain idle.

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Net operating income if groceries are continued amount in thousands Particulars Groceries Gene... View the full answer