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Question 5 10 points Save Answer Closing the Town Store would result in 75% of its traceable fixed continuing and a 15% increase in Mall
Question 5 10 points Save Answer Closing the Town Store would result in 75% of its traceable fixed continuing and a 15% increase in Mall Store sales and variable costs. Use the following data to determine the increase (decrease) in operating income if the Town store is closed. Mall Town Total Store Store Sales $212,000 $92,000 $120,000 Less variable costs 107.000 32.000 75.000 Contribution margin $105,000 $60,000 $ 45,000 Less traceable fixed expenses 79.000 32.000 47.000 Store segment margin $ 26,000 $28,000 ($ 2,000) Less common fixed expenses 10,000 6.000 4,000 Operating income $ 16,000 $ 22.000 ($6.000) OAS 750) OB (524.250) c (533.250) OD $ 6,000 ($ 9,750)
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