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Malabar Company specializes in imported novelty items from Asian countries.Malabar's management is deciding whether to open...

Malabar Company specializes in imported novelty items from Asian countries.Malabar's management is deciding whether to open a new store in Chicago, Illinois.Below are some of Malabar's costs.

Sales commissions

Cost of merchandise

Salaries to sales staff

Salary to store manager

Advertising on national television

Advertising in local newspapers

Store cleaning and maintenance

Central purchasing department

Which costs are relevant to the decision to open a new store in Chicago? (Please explain each choice)

A.Sales commissions, cost of merchandise, salaries to sales staff

B.Cost of merchandise, salary to store manager, advertising on national television

C.Salary to store manager, store cleaning and maintenance, central purchasingdepartment

D.Central purchasing department, store cleaning and maintenance, advertising inlocal newspapers

E.Advertising in local newspapers, store cleaning and maintenance, advertising on national television

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Answer #1

A.Sales commissions, cost of merchandise, salaries to sales staff

Above the relevant costs in order to determine to open a new store

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