hown 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 Connon fixed costs Income from operations Drexel-Hall Store 1 Profit Centers Store 2 Store 3 Dollars $1,800,000 1,080,000 Dollars Dollars Dollars 100% 60 $600,000 100% $600,000 100% $600,000 100% 372,008 62 378,000 $ 720,000 40% $228,000 38% $222,000 432,000 24 120,000 20 102,000 63 37% 17 330,000 55 $270,000 45 N 210,000 35 $ 288,000 180,000 $108,000 36,000 $ 72,000 16% $108,000 1BN $120,000 20% $ 60,000 20 10 48,000 18 66,000 11 66,000 11 6% $60,000 10% $:54,000 9% $ (6,000) (1)N 2 AN Il stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at 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 inimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher ices than the other two stores. he marketing manager of Drexel-Hall is considering two alternative advertising strategies, each of which would cost $15,000 per onth. One strategy is to advertise the name Drexel-Hall, which is expected to increase the monthly sales at all stores by 5 percent. e 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. etermine the expected effect of each strategy on the company's overall income from operations. Strategy 1 expected Strategy 2 expected increase increase in monthly income from operations in monthly income from operations