. Segment Profit Performance Analysis. Blaufuss Sausages has a central processing plant and three stores. Recently, profits have been declining. The projected 1999 income statement for the three stores appears below:

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What will each of the following actions do to Blaufuss' profits?

(a) Eliminate the Main Street store.

(b) Eliminate the King Street store.

(c) Eliminate the Main and King Street stores.

(d) Close all stores.

(e) Open a fourth store and divide allocated administrative expenses among four stores. (Assume that the new store will have a zero net income.)

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Main Street King Street Queen Street Total Sales.... $ 200 $175 $190 $565 Product cost of sausages (120) (100) (110) (330) Gross margin $ 80 $ 75 $ 80 $ 235 Direct store expenses (60) (85) (35) (180) Allocated administrative expenses (25) (15) (20) (60) Net income $ (5) $ (25) $ 25 $ (5)