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Connect X Homework Help - Q&A from On x + X -) https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%25... . . . Assignment #6 - Chapter 12 i Saved Help Save & Exit Submit General office expenses-other* 25, 000 9, 000 6, 000 10, 000 Total administrative expenses 289, 300 98, 000 82, 400 108,900 Total operating expenses 903 , 750 304, 500 261, 000 338, 250 Operating income (loss) $ 146, 250 $ 82,500 $ (33, 000) $ 96, 750 10 points *Allocated on the basis of sales dollars. 00:57:03 Management is very concerned about the Downtown Store's inability to show a profit, and consideration is being given to closing the store. The company has asked you recommend a course of action. Additional information available on the store is provided below: Ask a. The manager of the store has been with the company for many years; he would be retained and transferred to another position in References the company if the Downtown Store were closed. His salary is $6,000 per month, or $18,000 per quarter. If the store were not closed, a new employee would be hired to fill the other position at a salary of $5,000 per month. b. The lease on the building housing the Downtown Store can be broken with no penalty. c. The fixtures being used in the Downtown Store would be transferred to the other two stores if the Downtown Store were closed. d. Employee benefits are 12% of salaries e. A single delivery crew serves all three stores. One delivery person could be discharged if the Downtown Store were closed; this person's salary amounts to $7,000 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but it does eventually become obsolete. f. One-third of the Downtown Store's insurance relates to its fixtures. g. The general office salaries and other expenses relate to the general management of the Tilots Corporation. The employee in the general office who is responsible for the Downtown Store would be discharged if the store were closed. This employee's compensation amounts to $8 000 ner allarter Mc Graw Hill Education Type here to search O L 6 ' 4X ENG 11:21 PM 2020-08-12Connect X *Homework Help - Q&A from On x + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%25... . . . Assignment #6 - Chapter 12 i Saved Help Save & Exit Submit y. The general ollice Salaries allu otniel experises relate to the general MildTidyemeril OI the TIOIs Corporation. The employee In the general office who is responsible for the Downtown Store would be discharged if the store were closed. This employee's compensation amounts to $8,000 per quarter. Required: 1. Prepare a schedule showing the change in revenues and expenses and the impact on the overall company operating income that 10 would result if the Downtown Store were closed. (Do not round intermediate calculations. Negative amounts should be indicated by points a minus sign.) 00:56:44 Less costs that can be avoided: Ask References Mc Graw Hill Education Type here to search O L ^ 6 8 x ENG 11:21 PM 2020-08-12Connect X Homework Help - Q&A from On x + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%25... . . . Assignment #6 - Chapter 12 i Saved Help Save & Exit Submit 2. Based on your computations in (1) above, what would you recommend to the management of the Tilots Corporation? The Downtown Store should be closed. 10 O The Downtown Store should not be closed. points 3. Assume that if the Downtown Store were closed, sales in the Uptown Store would increase by $200,000 per quarter due to loyal 00:56:18 customers shifting their buying to the Uptown Store. The Uptown Store has ample capacity to handle the increased sales, and its gross margin is 43% of sales. a. Calculate the Net advantage of closing the Downtown Store. Ask References Net advantage of closing the Downtown Store b. What recommendation would you make to the management of the Tilots Corporation's? O The Downtown Store should not be closed. The Downtown Store should be closed. Mc Graw Hill Education Type here to search O L ^ 6 9 . X ENG 11:21 PM 2020-08-12
