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Ingrove Fresh Juice has three locations in Kamloops: Downtown, North Shore and Dufferin. Management is concemed about the performance of the downtown location, the rent

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Ingrove Fresh Juice has three locations in Kamloops: Downtown, North Shore and Dufferin. Management is concemed about the performance of the downtown location, the rent is high and management is debating closing the store. A company-wide segmented income statement follows: Downtown North Shore Dufferin Total Sales $300,000 $350,000 $250,000 5900.000 Variable expenses 210.000 225.000 175.000 610.000 Contribution margin 90,000 125.000 75.000 290.000 Fixed expenses 150.000 75.000 40.000 265.000 Operating income (los) $(60.000) $50.000 $35.000 $25.000 An analysis of expenses reveals that if $40,000 of the downtown location's fixed expenses are allocated costs that would continue even if the store was closed. The North Shore and Dufferin locations could expect a 5% decrease in revenues due to lost promotional synergies closing the prominent downtown location. Required Compute the net dollar advantage or disadvantage of dropping the downtown location

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