The following information applies to the questions displayed below.$]$

Condensed monthly income data for Thurber Book Stores are presented in the following table for November $20$x$1.($Ignore income taxes.$)$

Mall Store Downtown Store Total

Sales $ $260,000$ $ $400,000$ $ $660,000$

Less: Variable expenses $104,000276,000380,000$

Contribution margin $ $156,000$ $ $124,000$ $ $280,000$

Less: Fixed expenses $66,000140,000206,000$

Operating income $ $90,000$ $ $(16,000)$ $ $74,000$

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 $31,20$x$2,$ if either store were closed.

The operating results for November $20$x$1$ are representative of all months.

Required:

Calculate the increase or decrease in Thurber$$s monthly operating income during $20$x$2$ if the downtown store is closed.

The management of Thurber Book Stores is considering a promotional campaign at the downtown store that would not affect the mall store. Annual promotional expenses at the downtown store would be increased by $$200,000$ in order to increase downtown store sales by $10$ percent. What would be the effect of this promotional campaign on the company$$s monthly operating income during $20$x$2?$

One$-$half of the downtown store$$s dollar sales are from items sold at their variable cost to attract customers to the store. Thurber$$s management is considering the deletion of these items, a move that would reduce the downtown store$$s direct fixed expenses by $15$ percent and result in the loss of $20$ percent of the remaining downtown store$$s sales volume. This change would not affect the mall store. What would be the effect on Thurber$$s monthly operating income if the items sold at their variable cost are eliminated?