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The most recent monthly income statement for Greenie Stores is given below: Due to its poor showing, consideration is being given to closing Store B.

The most recent monthly income statement for Greenie Stores is given below:

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Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one-fifth (20%) of its traceable fixed expenses will remain unchanged. The studies also show that completing Store B would result in a 20 percent increase in sales in Store A. The company allocates everyday fixed expenses to the stores based on sales dollars.

  1. Compute the overall increase or decrease in the company's operating income if Store B is closed. Show your work!

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