The Shoe Department at the Kani Department Store is being considered for closure. The following information...

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The Shoe Department at the Kani Department Store is being considered for closure. The following information relates to shoe activity: Sales revenue P 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 Shoe Department be closed? No, Kani would be worse off by P 13,000 O Yes, Kani would be better off by P 23,000 No, Kani would be worse off by P 40,000 O Yes, Kani would be better off by P 50,000 The Shoe Department at the Kani Department Store is being considered for closure. The following information relates to shoe activity: Sales revenue P 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 Shoe Department be closed? No, Kani would be worse off by P 13,000 O Yes, Kani would be better off by P 23,000 No, Kani would be worse off by P 40,000 O Yes, Kani would be better off by P 50,000

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Answer is Option 2 Explanation is as fol... View the full answer