Should we close og


Problem: In this general store, we have two departments - cosmetics and other goods (OG). Cosmetics had a contribution margin of $159,500, OG had a contribution margin of $23,200. Forty percent of the rent of $120,000 is charged to OG. If we close OG, we can sublet the space and receive an income of $18,000 for it. Should we close OG? Question options: It does not matter because Losses will remain the same if we close OG Yes because Losses will decrease by 5,200 if we close OG No because Losses will increase by 5,200 if we close OG Cannot be determined from the information given

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Accounting Basics: Should we close og
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