Thrifty Markets, Inc., operates three stores in a large metropolitan area. The companys segmented absorption costing income statement for the last quarter is given below:

Thrifty Markets, Inc. Income Statement For the Quarter Ended March 31
	Total			Uptown Store			Downtown Store			Westpark Store
Sales	$	2,700,000		$	1,000,000		$	600,000		$	1,100,000
Cost of goods sold		1,448,000			530,000			358,000			560,000
Gross margin		1,252,000			470,000			242,000			540,000
Selling and administrative expenses:
Selling expenses:
Direct advertising		124,100			40,000			42,000			42,100
General advertising*		20,000			7,407			4,444			8,149
Sales salaries		155,000			50,000			42,000			63,000
Delivery salaries		36,000			12,000			12,000			12,000
Store rent		203,000			69,000			63,000			71,000
Depreciation of store fixtures		46,340			17,800			8,700			19,840
Depreciation of delivery equipment		30,000			10,000			10,000			10,000
Total selling expenses		614,440			206,207			182,144			226,089
Administrative expenses:
Store management salaries		70,000			22,000			21,000			27,000
General office salaries*		45,000			16,667			10,000			18,333
Utilities		94,600			32,000			30,000			32,600
Insurance on fixtures and inventory		24,000			7,500			8,500			8,000
Employment taxes		36,700			11,300			12,000			13,400
General office expensesother*		21,000			7,778			4,667			8,555
Total administrative expenses		291,300			97,245			86,167			107,888
Total operating expenses		905,740			303,452			268,311			333,977
Net operating income (loss)	$	346,260		$	166,548		$	(26,311	)	$	206,023

*Allocated on the basis of sales dollars.

Management is very concerned about the Downtown Stores inability to show a profit, and consideration is being given to closing the store. The company has asked you to make a recommendation as to what course of action should be taken. The following additional information is available about the store:

a.	The manager of the store has been with the company for many years; he would be retained and transferred to another position in the company if the store were closed. His salary is $7,000 per month, or $21,000 per quarter. If the store were not closed, a new employee would be hired to fill the other position at a salary of $6,000 per month.
b.	The lease on the building housing the Downtown Store can be broken with no penalty.
c.	The fixtures being used in the Downtown Store would be transferred to the other two stores if the Downtown Store were closed.
d.	The companys employment taxes are 13% of salaries.
e.	A single delivery crew serves all three stores. One delivery person could be discharged if the Downtown Store were closed; this persons salary amounts to $8,500 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but it does eventually become obsolete.
f.	One-third of the Downtown Stores insurance relates to its fixtures.
g.	The general office salaries and other expenses relate to the general management of Thrifty Markets, Inc. The employee in the general office who is responsible for the Downtown Store would be discharged if the store were closed. This employees compensation amounts to $10,000 per quarter.

Required:
1.	Prepare a schedule showing the change in revenues and expenses and the impact on the overall company net operating income that would result if the Downtown Store were closed. (Input all amounts as positive values. Do not round your intermediate calculations. Round your final answers to the nearest dollar amount.)

3.	Assume that if the Downtown Store were closed, sales in the Uptown Store would increase by $300,000 per quarter due to loyal customers shifting their buying to the Uptown Store. The Uptown Store has ample capacity to handle the increased sales, and its gross margin is 47% of sales.

a.	Calculate the Net advantage of closing the Downtown Store. (Round your intermediate and final answers to the nearest dollar amount.)

Net advantage of closing the Downtown Store

$