Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The condensed monthly estimated income data for Kaidama Stores are presented in the following table for November 2022: Mall Store Downtown Store Total Sales P
The condensed monthly estimated income data for Kaidama Stores are presented in the following table for November 2022: Mall Store Downtown Store Total Sales P 80,000 P 120,000 P 200,000 - Variable Expenses 32,000 84.000 116,000 Contribution Margin P 48,000 P 36,000 P 84,000 - Fixed Expenses 20.000 40.000 60,000 Operating Income P 28,000 (P 4.000) P 24,000 Additional information Management estimates that closing the Downtown Store would result in a 10 percent decrease in Mall Store sales, while closing the mall store would not affect Downtown Store sales. One-fourth of each store's fixed expenses would continue through December 31, 2022 if either store were closed. The operating results for November 2012 are representatives of all months. How much is the decrease in Kaidama monthly operating income during 2022 if the Downtown Store is closed? OP 10,800 P 6,000 O P 40,800 OP 25,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started