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Ridiey and Scott Mercantile operates two stores one on Oriole Avenue and the other on Cheyenne Road. Results for the month of May, which is

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Ridiey and Scott Mercantile operates two stores one on Oriole Avenue and the other on Cheyenne Road. Results for the month of May, which is representative of all months, are as follows: The following information pertains to Ridley and Scott's operations. - Fortypercent of eachistore's direct foxed expenses would continue if either store were closed - Ridley and Scott allocates common fixed expenses to each store on tho basis of sales dollars. - Management estimates that closing the Cheyenne Road store would result in a 20 S decrease in the Orioie Avenue stoce's sales, while closing the Oriole Apenie store would have noeffect on the Cheyenne Road storess sales. Instead of closing Cheyenne and instead of running the promotional campaign, Ridiey 5 cott is considering modifications to the product mix offered at Cheyenne, Thirty percent of the Cheyenne Road store's dollar sales come from items that are sold. at. variable cost to attract customers to the store Managers are considering deleting those items from the product mix Doing so would reduce the Cheyenne Road store's direct fived expenses by 24% but would also reduce the remaining sales volume result by. an additional 17%. There would be no effect on the Oride Avenuestore. What effect will this change have on income. (Round arswer to the neavest whole dollar, es: 5,285) in operating incomes eTextbook and Media Assistance Used Attempts: 2 of 4 used (d2) The parts of this question must be completed in order. This part will be avsibble when you complete the part above

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