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The Wreck, a popular restaurant in the OBX with four locations. The owner of The Wrede evaluated the operating performances of the locations, as shown
The Wreck, a popular restaurant in the OBX with four locations. The owner of The Wrede evaluated the operating performances of the locations, as shown below. The owners are debating whether the one the should be eliminated. The Other 3 Locations The Unprofitable Location Total Sales $2,598,250 $1.250,505 53.848.755 Cost of Goods Sold 1.965.000 1.100.100 3.065 100 Gross Profit 633,250 150.405 783,655 Operating Expenses 230.000 155.000 385.000 Net Income $403.250 ($4.595) $398,655 Within the unprofitable location, cost of goods sold are 65% variable and 35% fixed and operating expenses are 25% variable and 75% fixed. If the unprofitable location is eliminated, 70% of all its fixed costs can be avoided. What is the change in total net income if the unprofitable location is eliminated? (Do not round intermediate calculations and round final answer to nearest dollar. List any increase as a positive number and any decrease as a negative number, using the - sign.)
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