Parksern Sdn. Bhd. operates three stores in Pahang. A segmented income statement for the company for the last quarter is given below: Parksern Sdn. Bhd Income statement For the Quarter ended March 31 Angsana Store Mega Store Jaryen Store Total RM RM RM RM Sales 150,000 100,000 105,000 355,000 Less variable cost: Direct Material 30,000 25,300 32,700 88,000 Direct Labour 50,000 30,000 27,300 107,300 Overhead 17,100 24,500 35,000 76,600 Contribution Margin 52,900 20,200 10,000 83,100 Less fixed cost 39,900 10,500 20,000 70,400 Net operating income/(loss) 13,000 9,700 (10,000) 12,700 The Jaryen Store has recently shown losses over the past two years. For this reason, management is giving consideration to close the store. The company has asked you to make recommendation as to whether the store should be closed or kept open. The following additional information is available for you to use: (i) All production is sold. Closing the Jaryen Store will result in a 5 percent decrease in the sales of the Angsana Store and Mega Store. (ii) A study indicates that RM5,500 of the fixed expenses being charged to Jaryen store are sunk costs or allocated costs that will continue even if the Jaryen Store is closed