A company has three shops (R, S and T) to which the following budgeted information relates:

Sixty percent of the total fixed costs are general company overheads. These are apportioned to the shops on the basis of sales value. The other fixed costs are specific to each shop and are avoidable if the shop closes down.If shop S closed down and the sales of the other two shops remained unchanged, what would be the revised budgeted profit for the company?(a) ?50 000(b) ?60 000(c) ?70 000(d) ?90 000

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Total Shop R Shop T Shop S £000 £000 £000 £000 Sales Contribution Less: Fixed costs Profit/loss 400 500 600 1500 280 (200) 100 (60) 40 60 120 (70) 50 (70) (10) 80