Shown as follows is a segmented income statement for Drexel-Hall during the current month. Drexel-Hall Store 1 Profit Centers Store 2 Store 3 Sales Dollars $1,800,000 100% Dollars $600,000 Dollars) Dollars % 100% $600,000 100% $600,000 100 x Variable costs 1,080,000 68 372,000 62 378,000 63 330,000 55 Contribution margin Performance margin $ 720,000 40% $228,000 38% $222,000 37% Traceable fixed costs: controllable: 432,000 24 120,000 28 102,000 17 Traceable fixed costs: committed $ 288,000 180,000 16% $108,000 18% $120,000 20% 18 48,000 8 66,000 11 $270,000 210,000 $ 60,000 66,000 45. X 35 10% 11 Store responsibility margin Common fixed costs 5 108,000 36,000 6% $ 60,000 10x $ 54,000 9% $ (6,000) (1)% Income from operations $ 72,000 2 4% 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 $69,000, and sales at Store 2 to increase by $96,000. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C The company's monthly income from operations.. All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was 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 minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly h 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 $69,000, and sales at Store 2 to increase by $96,000. CI 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Total monthly sales for Drexel-Hall stores. Net decrease expected in total monthly sales .I.. All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a pow minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slight prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that manageme estimates closing Store 3 would cause sales at Store 1 to increase by $69,000, and sales at Store 2 to increase by $96,00C 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C The monthly responsibility margin of Stores 1 and 2. Store 11 Store 2 Monthly Responsibility Margin Net increase Net increase ces All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built. 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 $69,000, and sales at Store 2 to increase by $96,000. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C The company's monthly income from operations. Expected increase in monthly operating income < Required B Required C> Seved Shown as follows is a segmented income statement for Drexel-Hall during the current month. Sales Variable costs Contribution margin Traceable fixed costs: controllable. Performance margin Traceable fixed costs: committed Store responsibility margin Common fixed costs Income from operations Help Save & Drexel-Hall Store 1 Profit Centers Store 21 Store 3 Dollars $1,800,000 1,080,000 100% Dollars $600,000 Dollars Dollars 100% $680,000 100% $600,000 60 372,000 62 378,000 63 330,000 100% 55 $ 720,000 40% $228,000 38% $222,000 37% $270,000 432,000 24 120,000 20 102,000 17 210,000 45% 35 $ 288,000 180,000 $ 108,000 16% $108,000 18% $120,000 20% $ 60,000 18 48,000 8 66,000 11 66,000 10 % 11 6% $ 60,000 10% $ 54,000 9% $ (6,000) (1)% 36,000 2 $ 72,000 4% 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 $69,000, and sales at Store 2 to increase by $96,000. 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: Ch