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The most recent monthly income statement for Kennaman Stores is given below: Sales Total Store IStore II $3,000,000 $1,200,000 $1,800,000 Less variable expenses 1,240,000 880,000
The most recent monthly income statement for Kennaman Stores is given below: Sales Total Store IStore II $3,000,000 $1,200,000 $1,800,000 Less variable expenses 1,240,000 880,000 360,00 Less traceable fixed expenses 0,000 220,000 180,000 Less common fixed expenses 300,000 180,000-120.000 Net operating income $ 1,060,000 80,000) $1,140,000 Kennaman is considering closing Store I. If Store I is closed, traceable fixed expenses would continue at 20% of their current level and they would be able to reduce common fixed costs by 30%. Should they discontinue Store
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