Recent Posts • Latest Topics • Unanswered Questions

The most recent monthly income statement for Benner Stores is given below: TotalStore AStore BSales$ ...

karamvir19

wrote...

Go to Answer

Posts: 137

Rep:

A year ago

The most recent monthly income statement for Benner Stores is given below: TotalStore AStore BSales$ ...

The most recent monthly income statement for Benner Stores is given below:

	Total	Store A	Store B
Sales	$ 1,000,000	$ 400,000	$ 600,000
Variable expenses	580,000	160,000	420,000
Contribution margin	420,000	240,000	180,000
Traceable fixed expenses	300,000	100,000	200,000
Store segment margin	120,000	140,000	(20,000)
Common fixed expenses	50,000	20,000	30,000
Net operating income	$ 70,000	$ 120,000	$ (50,000)

Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one-fourth of its traceable fixed expenses will continue unchanged. The studies also show that closing Store B would result in a 10 percent decrease in sales in Store A. The company allocates common fixed expenses to the stores on the basis of sales dollars.

Required:
Determine the monthly financial advantage (disadvantage) of closing Store B.

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

Read 58 times

1 Reply

Report

Replies

Answer verified by a subject expert

choroni64

wrote...

Posts: 172

Rep:

A year ago

More solutions for this book are available here

Report

Related Topics

karamvir19 Author

wrote...

A year ago

Thanks for your help!!

homework1

wrote...

Yesterday

Thanks

riptide

wrote...

2 hours ago

This helped my grade so much Perfect

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1368 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

370

801

549

Your Opinion

Previous poll results: Do you trust social media networks with protecting your privacy?

Courses by Biology Forums

Strange Ingredients Lurking in Doritos Chips

It's sore throat season, why does my mucus have red spots?

The Toxic Skin and Fungi Defense

Bonobos, Chimpanzees, and the 98% DNA Link

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.