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Closing the Town Store would result in 35% of its traceable fixed continuing and a 10% increase in Mall Store sales and variable costs. What
Closing the Town Store would result in 35% of its traceable fixed continuing and a 10% increase in Mall Store sales and variable costs. What is the increase (decrease) in operating income if the Town store is closed?
Total | Mall | Town | |
Sales | $260,000 | $140,000 | $120,000 |
Variable costs | $174,000 | $90,000 | $84,000 |
Contribution margin | $86,000 | $50,000 | $36,000 |
Traceable fixed costs | $60,000 | $28,000 | $32,000 |
Segment margin | $26,000 | $22,000 | $4,000 |
Common fixed expenses | $12,000 | $7,000 | $5,000 |
Net income | $14,000 | $15,000 | ($1,000) |
Group of answer choices
($15,200)
($19,800)
($10,200)
($10,800)
($ 1,200)
please solve will like
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