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can someone help me with part A and B? dropping a segment question 2 Condensed monthly operating income data for Senators Inc. for March 2020

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2 Condensed monthly operating income data for Senators Inc. for March 2020 is presented below 4 5 6 0 Sales Less variable expenses Contribution margin Less traceable fixed expense Segment margin Less common fixed expenses Operating income Total Ottawa Store Montreal Store 199,400 $ 80,000 $ 119,400 115,580 32,000 83,580 83,820 48,000 35 820 60,000 20,000 23,820 28,000 (4.180) 10.000 4,000 6.000 13,820 $ 24.000 $ (10,180) 40.000 10 11 $ 12 11 14 Additional information regarding Senator's operations includes. 75% of each store's traceable fixed expenses are avoidable if the store were to be closed Senator inc allocates common fixed expenses to each store on the basis of sales dollars. 15 16 17 38 19 20 Management estimates that closing the Montreal store would result in a 10% decrease in the Ottawa store sales, while closing the Ottawa store would not affect the Montreal store sales The operating results for March are representative of all months 23 24 ) Senator Inc is considering a promotional campaign at the Montreal store that would not affect the Ottawa store. Suppose that increasing monthly promotional expenses at the Montreal store by $ 5,000 will increase the Montreal store sales by 10% * Required: A decision by Senator Inc. to close the Montreal store would result in what monthly increase (decrease) in Senator's operating income? 31 32 Last contribution margin $ 35 820 33 Avoidable traceable fixed expense 30.000 34 Promotional campain 5,000 35 Increase in Montreal sales 11.040 36 17 Net increase (decrease) in operating income ir Montreal store is closed $ (11.120) 38 39 40 (6) By how much would the monthly operating income or Senator's increase (decrease 43 45 46 Increase (decrease) in monthly operating income

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