COMMUNICATING IN PRACTICE P2 BTN 22-2 Improvement Station is a national home improvement chain with more than 100 stores throughout the country. The manager of each store receives a salary plus a bonus equal to a percent of the store's income for the reporting period. The following income calculation is on the Denver store manager's performance report for the recent monthly period. Sales Cost of goods sold Salaries expense Depreciation-Equipment General office expense Income Manager's bonus (0.5%) $2,500,000 800,000 500,000 200,000 75,000 $925,000 $ 4,625 In previous periods, the bonus had also been 0.5%, but the performance report had not included any charges for the general office expense, which is now allocated to each store as a percent of its sales. Required Assume that you are the national office manager. Write a half-page memorandum to your store managers explaining why general office expense is in the new performance report.