021F / Managerial Accounting Test / Managerial Accounting Test Question 10 Problem 2 Not yet answered Potato Stores is a retailer in Prince Edward Island. The most recent monthly income statement for Potato Stores is given below: Marked out of 5.00 Store A Store B Total Flag question Sales $1,400,000 $1,200,000 $2,600,000 Less variable expense 98.000 $567,000 1,565,000 Contribution margin $402,000 $633,000 $1,035,000 Less traceable fixed expense 398.000 189,000 587,000 Segment margin $4.000 $444,000 $448,000 ess common fixed expense 50:000 50 000 100,000 Operating income $(46.000) $394.000 $348,090 Potato is considering closing Store A. If Store A is closed, one-fourth of its traceable fixed expenses would continue to be incurred. Also, the closing of Store A would result in a 20% increase in contribution margin in Store B. Potato allocates common fixed expenses on the basis of sales dollars. Should Potato Stores close Store A? (Show all calculations) (5 points) Paragraph 12:02 PM 7"C Cloudy ~DO / 4x ENG 2021-11-25