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Sales Less variable expense Contribution margin Less traceable foxed expense Segment margin Less common fixed expense Operating income Total $3,150,000 $1.255.000 $1.395.000 $575.000 $820,000 $380.000

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Sales Less variable expense Contribution margin Less traceable foxed expense Segment margin Less common fixed expense Operating income Total $3,150,000 $1.255.000 $1.395.000 $575.000 $820,000 $380.000 $440,000 western stores is given below Store A Store B $1,650,000 $1,500,000 $1.155 000 $6.00.000 $495.000 $900,000 $325.000 $250,000 $170,000 $650,000 51522000 $228.000 $18.000 $422.000 Westem is considering closing Store A. I Store 1 is closed, one fourth of its traceable iwed expenses would continue to be incurred. Also, the closing of Store would result in a 25% decrease in sales in Store B. Western allocates common fixed dexpenses on the basis of sales coitars and none of these costs would be saved a store were shut down Required: (do not round any percentages) A. Compute the overall increase or decrease in the operating income of Western Stores Store A is closed, Show a new, revised properly constructed' segment statement without Store A to ald in your analysis. (5 marks) B. Provide a qualitative analysis for closing the store to minimum of 2 pros 2 cons) Based on your quantitied AND qualified analysis should they close the store? (5 mark

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