Use the data presented above for Drexel-Hall to answer the following questions:
a. Assume that by spending an additional $15,000 per month in advertising a particular store, Drexel-Hall can increase the sales of that store by 10 percent. Which store should the company advertise to receive the maximum benefit from this additional advertising expenditure? Explain.
b. From the viewpoint of top management, which is the most profitable of the three stores? Why?
c. Which store manager seems to be pursuing the most effective strategy in managing his or her store?Why?

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Profit Centers Drexel-Hall Store 1 Store 2 Store 3 Dollars % Dollars Dollars % Dollars % Sales. Variable costs. ···· Contribution margin . Traceable fixed costs: controllable.. Performance margin $288,000 Traceable fixed costs: committed Store responsibility margin S 108,000 Common fixed costs Income from operations $ 72,000 1,080,000 60 $720,000 40% $228,000 38% $222,000 37% $270,000 45% 372,000 62 378,000 63 330,000 55 432,000 24 120,000 20 102,000 17 $120,000 210,000 35 16% $108,000 48,000 6% $60,000 18% 20% $60,000 66,000 (6,000) 10% 11 (1)% 180,000 10 66,000 1 10% $54,000 9% $ 36,000 2 4%