closing store b and label

1.680.000 $1,600,000 $2,400,000 640.000 960,000 The most recent monthly income statement for Benner Stores is given below Store B Store A 720,000 800.000 $(80.000) 400,000 $560.000 Total 2.320.000 1,680,000 1.200.000 480,000 200.000 $280.000 Problem 5 (20 Points) Sales Variable expenses Contribution margin Traceable fixed expenses Store segment margin Common fixed expenses Net operating income Due to its poor showing, consideration is being given to closing Store B. Studies show that it Store Bis closed, only one-fourth of its traceable fixed expenses will continue unchanged and the rest will be eliminated. The studies also show that closing Store B would result in a 10 percent decrease in sales and variable expenses in Store A. Required: Calculate the monthly financial advantage (disadvantage) to Benner Stores of closing St label whether it is an advantage or disadvantage