Taskt Below is the most recent annual nancial statement for Mistz: Mist: Inc. Statement of operations December 31, 2010 Storefront Ice cream trucks Total Sales $1,426,000 $ $40,000 $2,365,000 variable expenses 313 000 430 000 1 103 000 Contribution margin 313,000 430,000 1,103,000 Advertising 25,000 2,000 2T,000 Rent 150,000 150,000 Utilities 1?,000 12,000 20,000 Salary and wages 350,000 135,000 405,000 Depreciation 55 000 24 000 3'5 000 Operating income 115,000 25?,000 413,000 Taxes 29.05151 H.250 103,250 Net income $_ 53,000 $ gag, :50 iii 309150 In the event that the storefront location closes, the Pines think the equipment will be sold to a competitor for $20,000, net of taxes and disposition costs. The current lease includes two parking spots that are used by the ice cream trucks. Each spot would continue to be leased at a rate of $6,000 annually. The current advertising budget benefits both the storefront and the ice cream trucks. If the storefront is closed, the Pines expect the ice cream trucks\" advertising budget to be increased to $13,000. The Pines would require that even with the closure they maintain their current salary of $100,000 each. The other employees in the storefront would be laid oft. Lastly, in the storefront location, each year they cater several events over the winter holiday season. This would continue with the use of the truclcs, which are not normally in service at that time. The revenues on these sales are $250,000, and it is expected this will incur additional utilities of $500. 2