The Most Recent Monthly Income Statement for Benner Stores Is

question 95

Essay

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

Learn the distinction between actual performance and substantial performance and their relevance in fulfilling contractual obligations.

Understand the conditions under which specific orders, like orders for specific performance, can be sought to enforce contract terms.

Acknowledge the effect of personal and unforeseeable circumstances (like illness or unforeseen incapacity) on the performance of contractual obligations.

Understand the general principles related to the assignment of contracts.