FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Closing the Town Store would result in 35% of its traceable fixed continuing and a 20% increase in Mall Store sales and variable costs. Use the following data to determine the increase (decrease) in Cosmo's operating income if the Town store is closed.
Mall
Store
$140,000
90,000
$ 50,000
28,000
$ 22,000
7.000
$ 15,000
Town
Sales.
Less variable costs..
Contribution margin .
Less traceable fixed expenses..
Store segment margin..
Less common fixed expenses..
Operating income..
Total
$ 260,000
174,000
$ 86,000
60,000
$26,000
12,000
$14,000
Store
$120,000
84,000
$ 36,000
32,000
$ 4,000
5,000
$( 1,000)
O A. S 1,000.
O B. $ (5,200).
O C.$ (14,800).
O D. $ (15,200).
O E. $ (24,800).
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Transcribed Image Text:Closing the Town Store would result in 35% of its traceable fixed continuing and a 20% increase in Mall Store sales and variable costs. Use the following data to determine the increase (decrease) in Cosmo's operating income if the Town store is closed. Mall Store $140,000 90,000 $ 50,000 28,000 $ 22,000 7.000 $ 15,000 Town Sales. Less variable costs.. Contribution margin . Less traceable fixed expenses.. Store segment margin.. Less common fixed expenses.. Operating income.. Total $ 260,000 174,000 $ 86,000 60,000 $26,000 12,000 $14,000 Store $120,000 84,000 $ 36,000 32,000 $ 4,000 5,000 $( 1,000) O A. S 1,000. O B. $ (5,200). O C.$ (14,800). O D. $ (15,200). O E. $ (24,800).
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