Shown as follows is a segmented income statement for Drexel-Hall during the current month. I 100% 62 38% Store 1 Dollars $600,000 372,000 $228,000 120,000 $108,000 48,000 $ 60,000 Drexel-Hall Dollars % $1,800,000 100% 1,080,000 60 $ 720,000 40% 432,000 24 $ 288,000 16% 180,000 10 $ 108,000 6% 36,000 2 $ 72,000 4% Sales Variable costs Contribution margin Traceable fixed costs: controllable Performance margin Traceable fixed costs: committed Store responsibility margin Common fixed costs Income from operations 28 18% 8 10% Drexel-Hall Dollars $1,8 , 1 1, 8 , 6 $ 72 , 4% 432, 24 $ 288 , 16% 18 , 1 $ 18 , 36 , 2 $ 72, 4 Store 1 Dollars $6 , 372, $228, 12 , $18, 48, $ 6 , 1e 6 38% 2 18 8 Profit Centers Store 2 Dollars $6 , 1% 378, 63 $222, 37% 12 , 17 $12 , 2 66, 11 $ 54, 9% Store 3 Dollars $6 , 1 ; 33 , 55 $27 , 45 ; 21 , 35 $ 6 , 1 ; 66 , 11 $ (6, ) (1) 6% 1% 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. 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 $34,000, and sales at Store 2 to increase by $125,000. 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 Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations