Problem 8-30 (Part Level Submission) Ridley and Scott Mercantile operates two stores, one on Maple Avenue and the other on Fenner Road. Results for the month of May, which is representative of all months, are as follows: Maple Avenue Store Fenner Road Store Total Sales Variable expenses Contribution margin Direct fixed expenses Common fixed expenses Total fixed expenses Operating income $120,000 $203,600 115,300 88,300 61,000 10,100 71,100 $27,300 (10,100) $17,200 $83,600 31,300 52,300 20,000 84,000 36,000 41,000 5,100 46,100 5,000 The following information pertains to Ridley and Scott's operations . One-fourth of each store's direct fixed expenses would continue if either store were closed . Ridley and Scott allocates common fixed expenses to each store on the basis of sales dollars Management estimates that closing the Fenner Road store would result in a 10% decrease in the Maple Avenue store's sales, while closing the Maple Avenue store would have no effect on the Fenner Road store's sales (a1) Your answer is correct. Calculate the operating income if the Fenner Road store is closed Operating income 6720