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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, and operate

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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, 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 stightly higher prices than the other two stores. The marketina manager of Drexel. Hall is considering two alternative advertaina strateoies cach of which would cost 515.000 Der 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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