Dear teachers,
I calculated Requires C, but the answer was 22,800, not correct. Please teach me how to calculate it. Sincerely.
ozto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&iaunchurahttps%253A%252F%252Furtumassonline.net%252Fwebapps%252Fportal2.. TAL MI Dinimal Ford TERIM Marbuoto inom 22A Swed Help Save & Exit Submit Check my work 1 Exercise 22.7 (Static) Closing an Unprofitable Business Unit (LO22-1, LO22-2, LO22-3, LO22-5) Shown as follows is a segmented income statement for Drexel Hall during the current month. Sales Variable costs Contribution margin Traceable fixed costs: controllable Performance margin Traceable fixed costs: committed Store responsibility margin Common fixed costs Income from operations 40N Drexel Hall Dollars $1,800,000 100% 1.080,000 60 $ 720,000 432.000 24 $ 288,000 16% 180.000 10 $ 108,000 6% 36,000 2 $ 72,000 496 Store 1 Dollars S600,000 372,000 $228,000 120,000 $108,000 48,000 $ 60,000 Profit Centers Store 2 Dollars 96 $600,000 100% 378,000 63 $222.000 37% 102,000 17 $120,000 20% 66,000 11 $ 54,000 9% 100% 62 38% 20 1896 8 1096 Store 3 Dollars W $600,000 100% 330,000 SS $270,000 45 % 210,000 35 $ 60,000 10 9 66,000 11 $ (6,000) () All stores are similar in size, carry similar products, and operate in similar neighborhoods Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $60,000, and sales at Store 2 to increase by $120,000. Closing Store 3 is not expected to cause any change in common fixed costs Compute the increase or decrease that closing Store 3 should cause in a. Total monthly sales for Drexel-Hall stores. Prey 1 of 3 !!! Next > heducation.com/ext/map/index.html?_conacon&external_browser=0&launchUrl=http%253A%252F%252Fuml.umassonline.net%2b2Fwebapps%252 Toutsumi, L My UML, QTNine En for Student Microsoft Microsoolo In Linkedin Saved Help prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $60,000, and sales at Store 2 to increase by $120,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations, Complete this question by entering your answers in the tabs below. Required A Required B Required C The company's monthly income from operations. Expected increase in monthly operating income