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Shown as follows is a segmented income statement for Drexel-Hall during the current month. Profit Centers Drexel-Hall Store 1 Store 2 Store 3 Dollars % Dollars % Dollars % Dollars % Sales $1,000,000 100% $600,000 100% $600,000 100% $600,000 100 0 Variable costs 1,080,000 60 372,000 62 378,000 63 330,000 55 Contribution margin $ 720,000 40% $223,000 38% $222,000 37% $270,000 45 % Traceable fixed costs: controllable 432,000 24 120,000 20 102,000 17 210,000 35 Performance margin $ 288,000 16% $103,000 18% $120,000 20% $ 60,000 10 % Traceable fixed costs: committed 180,000 10 43,000 8 66,000 11 66,000 11 Store responsibility margin $ 108,000 6% $ 60.000 10% $ 541000 9% $ (5.000) (l)% Common fixed costs 36,000 2 Income from operations $ 72,000 4% All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established rst and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $48,000, and sales at Store 2 to increase by $123,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Dreer-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations