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I need hekp with question b and answering the monthly responsibility margin. Profit Centers Drexel-Hall Store 1 Store 2 Store 3 Dollars Dollars Dollars Dollars

I need hekp with question b and answering the monthly responsibility margin.

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Profit Centers Drexel-Hall Store 1 Store 2 Store 3 Dollars Dollars Dollars Dollars Sales $1, 800, 000 100% $600, 090 100% $ 600, 000 100% $ 600, 000 100 % Variable costs 1, 080, 090 60 372, 000 62 378,000 63 330, 000 55 Contribution margin $ 720,000 40% $ 228, 060 38% $222,060 37% $270,000 45 % Traceable fixed costs: controllable 432, 000 24 120, 000 20 102, 000 17 210, 000 35 Performance margin $ 288,909 16% $108, 090 18% $ 120, 090 20% $ 60, 090 10 % Traceable fixed costs: committed 180, 900 10 48, 090 8 66,090 11 66,090 11 Store responsibility margin $ 108, 000 6% $ 60,000 10% $ 54,000 9% $ (6,000) (1) % Common fixed costs 36,000 Income from operations $ 72,000 4% 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. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations. * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C The monthly responsibility margin of Stores 1 and 2. Monthly Responsibility Margin Store 82,800 * Net increase Store 98,400 (x Net increase Required A Required C >

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