The following information is from Good Read Books. Good Read is a regional book store with three regional stores. The May income statement for all stores is shown.

A. Comment on the operating income results for each store.

B. Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store?

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Sales Cost of goods sold Gross profit Expenses Selling expenses Wages expense Costs allocated from corporate Total expenses Operating income (loss) GOOD READS BOOKS Income Statement Month Ending May 31, 2018 Store 1 $52,920 27,930 $24,990 3,087 11,760 8,085 $22,932 $ 2,058 Store 2 $32,340 14,700 $17,640 1,470 8,820 4,410 $14,700 $ 2,940 Store 3 $74,970 36,750 $38,220 4,704 13,230 22,050 $39,984 ($ 1,764)