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Ridley and Scott Mercantile operates two stores, one on Cullumber Avenue and the other on Riverbed Road. Results for the month of May, which is

Ridley and Scott Mercantile operates two stores, one on Cullumber Avenue and the other on Riverbed Road. Results for the month of May, which is representative of all months, are as follows:

Cullumber Avenue Store

Riverbed Road Store

Total

Sales revenue

$83,100 $120,000 $203,100

Variable expenses

31,800 85,000 116,800

Contribution margin

51,300 35,000 86,300

Direct fixed expenses

19,000 40,000 59,000

Common fixed expenses

4,100 5,700 9,800

Total fixed expenses

23,100 45,700 68,800

Operating income

$28,200 $(10,700) $17,500

The following information pertains to Ridley and Scotts operations.

Forty percent of each stores 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 Riverbed Road store would result in a 10% decrease in the CullumberAvenue stores sales, while closing the Cullumber Avenue store would have no effect on the Riverbed Road stores sales.

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Calculate the operating income if the Riverbed Road store is closed.

Operating income $enter the operating income in dollars

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