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All stores arc similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower
All stores arc 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 Holmgren-Mulchan 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 S33. 000. and sales at Store 2 to increase by S112, 000. Closing Store 3 is not expected to cause any change in common fixed costs. Assuming we close Store 3. please answer the following: Compute the ret increase/decrease in the total monthly sales for Holmgren-Mulchan stores. (Omit the "$" sign in your response. Please use positive values for your response.) Compute the net increase/decrease in the monthly responsibility margin of Stores 1 and 2. (Omit the "$" sign in your response. Please use positive values for your response.) Compute the net increase/decrease in the company's monthly income from operations. (Omit the "$" sign in your response. Please use positive values for your response.) All stores arc similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Holmgren-Mulchan is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by S33. 000. and sales at Store 2 to increase by S112, 000. Closing Store 3 is not expected to cause any change in common fixed costs. Assuming we close Store 3. please answer the following: Compute the ret increase/decrease in the total monthly sales for Holmgren-Mulchan stores. (Omit the "$" sign in your response. Please use positive values for your response.) Compute the net increase/decrease in the monthly responsibility margin of Stores 1 and 2. (Omit the "$" sign in your response. Please use positive values for your response.) Compute the net increase/decrease in the company's monthly income from operations. (Omit the "$" sign in your response. Please use positive values for your response.)
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