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Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city. Management at SAG is concerned about declining sales and profitability of the Cornwall store and believes that outlet has been a drag on profits in recent years. The most recent income statement for the Cornwall store follows. SWAIN ATHLETIC GEAR Cornwall Street Store Income Statement For the Year Ending February 28 Sales revenue $ 14,300,000 Costs Cost of goods sold $ 7,289,000 Advertising 1,441,000 Store administrative salaries 995,000 Sales commissions 1,076,000 Leases and utilities 2,120,000 Allocated corporate support 1,642,000 Total costs $ 14,563,000 Net los
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