HOW DO I CALCULATE THE STATEMENT OF PROFIT OR LOSS FOR THIS QUESTION?

The following information is available to you: 1. If the Sura Tengah branch is closed down, En Ruslan can focus more on the other two branches. He believes that with more attention and promotion, sales in Sura Hujung will increase by 15% respectively. 2. The cost of sales comprises of 75% variable, while the rest is fixed. Closing down Sura Tengah branch will eliminate all of its variable cost of sales. However, the fixed portion will have to be re-apportioned to the other two branches on the basis of sales value. 2. If Sura Tengah branch is closed down, its electricity and rent costs can be avoided, while its manager will be reassigned to the Sura Hujung branch. Half of the staff salaries for each branch are variable cost. All workers at the Sura Tengah branch will be terminated and they will be compensated with RM5,000 in total. 3. The general expenses are fixed and allocated based on sales revenue. If the Sura Tengah branch is closed, the total general expenses can be reduced by 20%. 4. 20% of the miscellaneous expenses are variable. If the Sura Tengah branch is closed, its variable portion can be avoided. The remaining expenses will be absorbed by Sura Gate and Sura Hujung at the proportion of 60:40.O'DoNut produces and sells variety of doughnuts in three different branches located in Sura Gate, Sura Hujung and Sura Tengah. O'DoNut has been in the business for past ten years and has gained a satisfactory market share at its two branches of Sura Gate and Sura Hujung. However, business has not been that good at Sura Tengah for it keeps showing losses for the past three years. With the Covid19 pandemic, Encik Ruslan, the owner of O'DoNut, is contemplating to close the Sura Tengah branch as he feels that its position will go from bad to worse which will only eat up its total profit. The income statement of O'DoNut for the year ended 31 March 2020 is presented below: Sura Gate Sura Tengah Sura Hujung RM RM RM Sales 128,800 28,400 75,400 Cost of sales 51, 520 18,900 35,600 Gross profit 77,280 9,500 39,800 Less other expenses: Electricity 4,800 3,700 3,800 Rent 6,500 4,800 6,000 Managers salaries 5,600 3,500 2,400 Staff salaries 6,800 4,000 5,400 General expenses 8,240 4,260 4,500 Miscellaneous 2,200 2,800 1,800 Net Profit 43,140 (13,560) 16,500 The following information is available to you: 1. If the Sura Tengah branch is closed down, En Ruslan can focus more on the other two branches. He believes that with more attention and promotion, sales in Sura Hujung will increase by 15% respectively. 2. The cost of sales comprises of 75% variable, while the rest is fixed. Closing down Sura Tengah branch will eliminate all of its variable cost of sales. However, the fixed portion will