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Problem 8-30 (Part Level Submission) Ridley and Scott Mercantile operates two stores, one on Maple Avenue and the other on Fenner Road. Results for the month of May, which is representative of a months, are as follows Maple Avenue Fenner Road Total Store Store $83,600 Sales $120,000 $203,600 84,000 Variable expenses 31,300 115,300 Contribution margin 36,000 88,300 52,300 20,000 41,000 61,000 Direct fixed expenses Common fixed expenses 5,000 5,100 10,100 25,000 Total fixed expenses 46,100 71,100 $27,300 $(10,100) $17,200 Operating income The following information pertains to Ridley and Scott's operations. One-fourth of each store's direct fixed expenses would continue if either store were cl Ridley and Scott allocates common fixed expenses to each store on the basis of sales dollars. Management estimates that closing the Fenner Road store would result in a 10% decrease in the Maple Avenue store's sales, while closing the Maple Avenue store would have no effect on the Fenner Road store's sales. (a1) Your answer is correct. Calculate the operating income if the Fenner Road store is closed. Operating income 6720