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Gowsell Retail has two stores, East and West. East West Company Sales $400,000 $600.000 $1.000.000 Variable Expenses 160000 420.000 580 000 Contribution Margin 240.000 180,000

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Gowsell Retail has two stores, East and West. East West Company Sales $400,000 $600.000 $1.000.000 Variable Expenses 160000 420.000 580 000 Contribution Margin 240.000 180,000 420,000 Traceable Fixed Expenses 100,000 200.000 300000 Store Segment Margin 140,000 (20,000) 120,000 Common Fixed Expenses 20.000 30.000 150.000 Net Operating Income $120.000 ($50,000) $70,000 Gowsell is considering closing the West store, it is closed 1/4 of its traceable fixed expenses will continue Closing the West store would have an adverse effect on the company's reputation, which will result in a 10% decrease in the sales for the East store. Show the computation of the effect on Net Operating Income if the company closes the West store

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