Exercise 22.8 (Static) Cost-Volume-Profit Analysis (LO22-1, LO22-2, LO22-3, LO22-4) Shown as follows is a segmented income statement for Drexel-Hall during the current month. 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. The marketing manager of Drexel-Hall is considering two alternative advertising strategies, each of which would cost $15,000 per month. One strategy is to advertise the name Drexel-Hall, which is expected to increase the monthly sales at all stores by 5 percent. The other strategy is to emphasize the low prices available at Store 2 , which is expected to increase monthly sales at Store 2 by $150,000, but to reduce sales by $30,000 per month at Stores 1 and 3 . Determine the expected effect of each strategy on the company's overall income from operations. Exercise 22.8 (Static) Cost-Volume-Profit Analysis (LO22-1, LO22-2, LO22-3, LO22-4) Shown as follows is a segmented income statement for Drexel-Hall during the current month. 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. The marketing manager of Drexel-Hall is considering two alternative advertising strategies, each of which would cost $15,000 per month. One strategy is to advertise the name Drexel-Hall, which is expected to increase the monthly sales at all stores by 5 percent. The other strategy is to emphasize the low prices available at Store 2 , which is expected to increase monthly sales at Store 2 by $150,000, but to reduce sales by $30,000 per month at Stores 1 and 3 . Determine the expected effect of each strategy on the company's overall income from operations