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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

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 $84,600 $121,000 $205,600
Variable expenses 31,900 85,000 116,900
Contribution margin 52,700 36,000 88,700
Direct fixed expenses 19,400 41,000 60,400
Common fixed expenses 4,800 5,400 10,200
Total fixed expenses 24,200 46,400 70,600
Operating income $28,500 $(10,400 ) $18,100

The following information pertains to Ridley and Scotts operations.

One-fourth 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 Fenner Road store would result in a 10% decrease in the Maple Avenue stores sales, while closing the Maple Avenue store would have no effect on the Fenner Road stores sales. Calculate the operating income if the Fenner Road store is closed.

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