Suffolk, Inc. operates a chain of high-end home furnishing stores. Income statement for Central Division for the most recent year is as follows:

** See Excel file attachment

BUS 616 Spring, 2016 Assignment #3 Place each part on a separate tab. Submit one excel file using the naming convention lastname.firstname.A3 Suffolk, Inc. operates a chain of high-end home furnishing stores. Income statement for Central Division for the most recent year is as follows: Sales COGS Gross Margin 31,426,500 16,341,780 15,084,720 Selling Expense: Commissions Advertising Marketing admin 3,142,650 2,028,020 138,516 Store Expense: Occupancy Admin salaries Sales salaries Depreciation Miscellaneous 1,075,305 2,616,323 1,855,144 186,520 42,605 Central Div Expense: Salaries Occupancy Other General 328,470 73,423 36,598 2,514,120 Expenses Net Income 14,037,694 1,047,026 Sales commissions are paid at the same rate on all sales. "Central Division Expense" consists of costs directly related to operating the division headquarters, except that "general" expense consists of corporate headquarters costs allocated among the divisions based on sales. Part 1 25 points Corporate headquarters also prepares income statements for each individual store. The Kansas City store is one of twelve stores in Central Division. Sales for the KC store were $2,685,500. The store's gross margin percentage is 4 percentage points lower than the division as a whole. Company policy is to allocate advertising/marketing costs of the division equally among the stores in the division. Store expenses are all directly traceable to stores. The amounts for the KC store are: Occupancy 86,436 Admin salaries 241,600 Sales salaries 136,250 Depreciation 22,200 Miscellaneous 4,623 Central division expenses, including general, are allocated to stores based on sales. Prepare an income statement for the Kansas City store based on the above data and instructions. Part 2 35 points Because the Kansas City store appears to have poor profit performance, headquarters is considering closing the store. Determine the actual profit/loss contribution of the store to the corporation, showing any necessary calculations. Advertising costs of $55,725 related directly to the KC market. Would you recommend closing the store? Explain