The Most Recent Monthly Income Statement for Benner Stores Is

question 97

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.

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Definitions:

Telephone Cable

A wire or fiber that is used for telecommunications by transmitting voice and data signals.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and considered a part of its cost.

Bandages

Strips of cloth or other material used to wrap or cover wounds, providing protection and support.

Receiving Report

A document that records the details of materials or goods received by a company, ensuring the quantities and descriptions match the order.