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Shown as follows is a segmented income statement for Drexel - Hall during the current month: All stores are similar in size, carry similar products,

Shown as follows is a segmented income statement for Drexel-Hall during the current month:
All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first 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.
The marketing manager of Drexel-Hall is considering two alternative advertising strategies, each of which would cost $15,000 per month. One strategy is to advertise the
name Drexel-Hall, which is expected to increase the monthly sales at all stores by 5 percent. The other strategy is to emphasize the low prices available at Store 2, which is
expected to increase monthly sales at Store 2 by $150,000, but to reduce sales by $30,000 per month at Stores 1 and 3.
Determine the expected effect of each strategy on the company's overall income from operations.
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