The Boot Department at the Omaha Department Store Is Being

Multiple Choice

The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot activity:

If 70% of the fixed operating costs are avoidable, should the Boot Department be closed?

A) Yes, Omaha would be better off by $23,000.
B) Yes, Omaha would be better off by $50,000.
C) No, Omaha would be worse off by $13,000.
D) No, Omaha would be worse off by $40,000.
E) None of the answers is correct.