Shown as follows is a segmented income statement for Drexel-Hall during the current month. Profit Centers Sales Variable costs Contribution margin Traceable fixed costs: controllable Performance margin Traceable fixed costs: committed Store responsibility margin Common fixed costs Income from operations Drexel-Hall Store 1 Store 2 Store 3 Dollars Dollars Dollars 3 Dollars $1,800,000 100% $600,000 100x $600,000 100% 1,080,000 60 372,000 62 378,000 63 $600,000 330,000 100% 55 $ 720,000 40% $228,000 38% $222,000 37% 432,000 24 120,000 20 102,000 17 16% $108,000 18% $120,000 20% 10 6% 48,000 $ 60,000 8 66,000 11 10% $ 54,000 9% $270,000 210,000 $ 60,000 66,000 $ (6,000) 45% 35 10 x 11 (1)% $ 72,000 2 4% $ 288,000 180,000 $ 108,000 36,000 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. All stores are similar in size, carry similar products, and operate in similar neighborhoods, Store I 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 mergin of Stores 1 and 2 e. The company's monthly income from operations Complete this question by entering your answers in the tabs below. Required A Required C Tata monthly sales for Drexel-all stores hast decrease to search N W S femed A Required B > LL D S R " % 5 2 T 6 LL F G Next >> & Person Home 9239 T B 9 0 K O ores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built a ver cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of mizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher es than the other two stores. management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management imates 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 re 3 is not expected to cause any change in common fixed costs. ompute the increase or decrease that closing Store 3 should cause in: Total monthly sales for Drexel-Hall stores. The monthly responsibility margin of Stores 1 and 2. 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. Monthly Responsibility Margin Store 1 Net increase Store 2 Net increase I 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 hi- 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. Clos 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