The $12 in Fixed costs for Bampton include $4n corporate costs- these costs can not be avoided if this location is closed. The rest of the fixed costs can be avoided if this location is closed, including $3 in depreciation for equipment - the equipment has no disposal value, and will result on a loss on disposal of $2 when disposed. Eastern is considering closing its Bampton store. If Bampton is closed, the following will likely occur: i. Sales at Ansonville will increase by 10% ii. Ansonville will have to rent more space - this will increase rent from $3 to $4 per year Required: A. Compute net income if Eastern Stores closes the Bampton location. B. What other consideration should be made if closing this store?

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