Should the company keep the ladies shoe department

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Question 1: Should the company keep the ladies shoe department?

Sales 1,500,00

Variable Exp 700,000

Fixed Wages 550,000

Fixed Advertising 200,000

Fixed Insurance on inventory 20,000

Net Operating Income $30,00

If the department is dropped, a job has to be created elsewhere for one employee who has been with the firm for many years. This employee has an annual salary of $40,000 and many years until retirement.

Reference no: EM132591182

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