12

Question 12 10 pts Closing the Town Store would result in 35% of its traceable fixed being eliminated and a 10% decrease in Mall Store sales and variable costs. What is the increase (decrease) in operating income if the Town store is closed? Sales Variable costs Contribution margin Traceable fixed costs Segment margin Common fixed Total $260,000 $174.000 $86.000 $60.000 $26.000 Mall $140,000 $90,000 $50,000 $28,000 $22,000 Town $120,000 $84.000 $36.000 $32,000 $4,000 expenses Net income $7,000 $5,000 SI2,000 S14,000 $15.000 ($1.000) (538,800) O ($29,800) O ($24,800) O ($20,200) ($29,200)