The Cosmetics Department at the Webb's Department Store Is Being

question 23

Multiple Choice

The Cosmetics Department at the Webb's Department Store is being considered for closure. The following information relates to cosmetics activity: $\begin{array} { l r } \text { Sales revenue } & \$ 300,000 \\\text { Variable costs: } & \\\text { Cost of goods sold } &200,000 \\\text { Sales commissions } & 20,000\\\text { Fixed operating costs }& 100,000\end{array}$ If all of the fixed operating costs are avoidable, should the Cosmetics Department be closed?

• A)Yes, Webb's Department Store would be better off by $20,000.
• B)Yes, Webb's Department Store would be better off by $100,000.
• C)No, Webb's Department Store would be worse off by $80,000.
• D)No, Webb's Department Store would be worse off by $100,000.
• E)No, Webb's Department Store would be worse off by $200,000.

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Definitions:

Urethra

The tube that conveys urine from the bladder to the outside of the body and, in males, also conveys semen.

Intense Sexual Arousal

A heightened state of sexual excitement that significantly exceeds normal levels of arousal.

Blue Balls

A slang term referring to the sensation of testicular pain due to prolonged sexual arousal without ejaculation.

Male Breasts

The chest area on males, which can develop more pronounced tissue, known as gynecomastia, under certain conditions.