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 Sales Dollars $1,800,000 % Dollars % Dollars 100% $600,000 100% $600,000 % 100% Dollars Variable costs 1,080,000 60 372,000 62 378,000 63 $600,000 330,000 % 100 % 55 Contribution margin $ 720,000 40% Traceable fixed costs: controllable 432,000 24 $228,000 120,000 38% $222,000 37% 20 102,000 Performance margin $ 288,000 16% Traceable fixed costs: committed 180,000 10 $108,000 48,000 18% 8 $120,000 66,000 17 20% $270,000 210,000 45 % 35 11 Store responsibility margin $ 108,000 6% $ 60,000 10% $ 54,000 9% $ 60,000 66,000 $ (6,000) 10 % 11 (1)% 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 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 $60,000, and sales at Store 2 to increase by $120,000. 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 Total monthly sales for Drexel-Hall stores. expected in total monthly sales $ 720,000 < Required A Required B >