Rocky Volcano Chocolate operates two stores, one in Edmonton and another in St. John's. The following income statements were prepared for the most recent year: Edmonton St. John's Net sales $3,780.000 $960.000 Variable costs: Cost of goods sold 1,512,000 528.000 Sales commission 189,000 48,000 Utilities 17,200 15,300 Contribution margin $2,061,800 $368,700 Fixed costs: Annual building lease 84,000 39,000 Salaries 380,000 180,000 Allocated corporate overhead 750,000 250,000 Amortization of store equipment & leasehold improvements 60,000 30,000 Operating income (loss) $787,800 $(130,300) The store equipment and leasehold improvements have no market value. The building leases can be cancelled without penalty. Required: 1. Calculate the dollar value of sales required for each store to break-even assuming that all of the fixed costs are to be covered? 2. Should management close the St. John's store? Assume that corporate overhead would be reduced by $100,000 if the St. John's store is closed