The company is considering giving greater discounts on the gallon and half-gallon packages of ice cream. It is estimated that the effects of this pricing policy would be to reduce the average selling price per gallon by 2.5%. Compute the effect of such a price reduction on the additional gallons of ice cream a store must sell in a month to break even. contribution margin= $4.80 per gallon. Retail sales price averages $12 per gallon of ice cream. Monthly fixed operating expenses for a typical store are $9,000. Parag's stores are now open 12 hours daily. Management is considering a proposal to decrease store hours by opening two hours later each morning. The change would reduce sales volume by an average of 125 gallons per month and cut fixed costs(utilities and wages) by $500. Would it pay for the company to change its store hours?