(CMA) Cosmo Inc.s income statement by segments for November 2011 is as follows: Total Mall Store Town Store Revenues $200,000 $80,000 $120,000 Variable costs 116,000 32,000 84,000 Contribution margin 84,000 48,000 36,000 Direct fixed costs 60,000 20,000 40,000 Contribution by store 24,000 28,000 (4,000) Indirect fixed costs 10,000 4,000 6,000 Operating income $ 14,000 $24,000 $(10,000) for2012 (10,000) 10,000-4=9,999.6 Additional information regarding Cosmos operations is as follows: One-fourth of each stores direct fixed costs will continue through December 31, 2012, even if either store is closed. Cosmo allocates indirect fixed costs to each store on the basis of revenues. These costs are regarded as unavoidable. Management estimates that closing the Town Store would result in a 10% decrease in the Mall Stores sales volume, whereas closing the Mall Store would not affect the Town Stores sales volume. The operating results for November 2011 represent the average for all months. a. Compute the increase/decrease in Cosmos monthly operating income for 2012 if the Town Store is closed. b. Cosmo is considering a promotion campaign at the Town Store that would not affect the Mall Store. Compute the increase/decrease in Cosmos monthly operating income in 2012, assuming annual promotion costs at the Town Store are increased by $60,000 and its sales volume increases by 10%. c. One-half of Town Stores revenues are from items sold at variable cost in order to attract customers to the store. Cosmo is considering discontinuing these items, a decision that would reduce the Town Stores direct fixed costs by 15% and result in the loss of 20% of its remaining revenues and variable costs. This change would not affect the Mall Store. Compute the increase/decrease in Cosmos monthly operating income for 2012, assuming the items sold at variable cost are discontinued.