Ridley and Scott Mercantile operates two stores, one on Blossom Avenue and the other on Ayayai Road. Results for the month of May, which is representative of all months, are as follows: Blossom Avenue Store Ayayai Road Store Total Sales revenue $80,000 $120,000 $200,000 Variable expenses 31,000 84.000 115,000 Contribution margin 49,000 36.000 85,000 Direct fixed expenses 19,000 40,000 59,000 Common fixed expenses 4,000 5,000 9,000 Total fixed expenses 23,000 45,000 68,000 Operating income $26,000 $(9,000) $17,000 The following information pertains to Ridley and Scott's operations. Forty percent 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 Ayayai Road store would result in a 10% decrease in the Blossom Avenue store's sales, while closing the Blossom Avenue store would have no effect on the Ayayai Road store's sales. (a 1) Calculate the operating income if the Ayayai Road store is closed. Operating income $ e Textbook and Media Save for Later Attempts: 0 of 4 used Submit