Question: JP Max is a department store carrying a large and varied stock of merchandise. Management is considering leasing part of its floor space for $72 per square foot per year to an outside jewelry company that would sell merchandise. Two areas currently in use are being considered: home appliances (1000 square feet) and televisions (1200 square feet) these departments had annual profits of $64,000 fir appliances and $82,000 fir televisions after allocated fixed occupancy costs of $7 per square feet were deducted. Allocated fixed occupancy costs include property tax, mortgage interest, insurance, and exterior maintenance for dept store.

a. Considering all the relevant factors which dept should be leased and why?