2 Snown as follows is a segmented income statement for Drexel-Hall during the current month. 10 points 8 0:20:43 Drexel.11 Dollars $1,800,000 1.ese, 60 5 720,000 40% 432.000 24 $ 288,eee 180.00 5 100,000 36,000 $72,000 Sales Variable costs Contribution margin Traceable fixed costs: controllable Performance margin Traceable fixed costs coneitted Store responsibility margin Common fixed costs Income from operations Store 1 Dollars $600,000 372,000 5228,00 120.000 $108,000 48,00 $ 60,000 385 20 18% Profit Centers Store 2 Dollars $600,000 378,000 5222, 375 102.000 $120, eee 66.ee $ 54, eee Store 3 Dollars $600,000 330,000 55 $270,000 210.000 $ 60,000 66.ee 11 $ (6,000) eBook Print References All stores are similar in size, carry similar products, and operate in similar neighborhoods Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1 Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to Increase by $57.000, and sales at Store 2 to increase by $100.000. Closing Store 3 is not expected to cause any change in common fixed costs Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores b. The monthly responsibility margin of Stores 1 and 2 c. The company's monthly income from operations. Complete this question by entering your answers in the tabs below. Required A Required Required Total monthly sales for Drexel-Hall stores. expected in total monthly sales Complete this question by entering your answers in the tabs below. Required A Required Required The monthly responsibility margin of Stores 1 and 2. Monthly Responsibility Margin Store Store 2 Complete this question by entering your answers in the tabs below. Required A Required Required The company's monthly income from operations. Expected in monthly operating income