QUESTION 4 Suppose a department store has two major departments: furniture and clothing. Due to changing consumer tastes that have resulted in falling furniture sales, the department store is deciding whether or not to close its furniture department and devote more space to clothing, which is increasing in popularity. The department store's revenues every three months are $660365 while it retains its furniture department, and the department store estimates revenues will increase to $826576 every three months if they close the furniture department. Operating expenses will remain constant at $275048 every three months in either case. The closure of the furniture department would incur refurbishment costs of $52850 over one year. What is the department store's accounting profits (every three months) before closing the furniture department? Answer to the nearest whole number (with no decimal places, $or- signs, spaces or commas).

QUESTION 4 Suppose a department store has two major departments: furniture and clothing. Due to changing consumer tastes that have resulted in falling furniture sales, the department store is deciding whether or not to close its furniture department and devote more space to clothing, which is increasing in popularity. The department store's revenues every three months are $660365 while it retains its furniture department, and the department store estimates revenues will increase to $826576 every three months if they close the furniture department. Operating expenses will remain constant at $275048 every three months in either case. The closure of the furniture department would incur refurbishment costs of $52850 over one year. What is the department store's accounting profits (every three months) before closing the furniture department? Answer to the nearest whole number (with no decimal places, $or- signs, spaces or commas).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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