uestion #3 Graham Stores is a Grocery retailer in Canada. The most recent monthly income statement for Graham is given below: Drop or Retain Segment ar Total Store StoreB $2,100,000 $1,300,000 S 800,000 $1,260,000 S 882,000 $378,000 S 840,000 S 418,000 S422,000 $ 770,000 441000 S329,000 70,000 23,000)93,000 Sales Less Variable Expenses Contribution Margin Less Fixed Expenses Operating Income (Loss) *Fixed Expenses include "Common" & Traceable Fixed Costs. Graham is considering closing Store A. If Store A is closed, $180,000 Traceable Fixed Expenses would no longer continue to be incurred, Closing Store A would increase Sales in Store B by 20% Required a. Calculate the overal increase or decrease in the Operating Income of Graham Stores if Store A is closed. (7 marks) Show Work. ANSWER: S I lease, circle one: ncrease toe b. Assuming Store A remains open. Graham Stores is considering a $100,000 Advertising campaign that will promote Sales in only one of the two stores. If such a campaign will increase Sales in either store by S500,000, which Store should be the target of the campaign? Why? (3 marks) Show your work