10.00 points Problem 12-23 Close or Retain a Store [LO2] Thrifty Markets, Inc, operates three stores in a large metropolitan area. The company's segmented absorption costing income statement for the last quarter is given below Thrifty Markets, Inc. Income Statement For the Quarter Ended March 31 Uptown Downtown Westpark Total Store Store 2,900,000 $1,100,000 $600,000 $1,200,000 ,548,000 627,000 357,000564,000 Cost of goods sold Gross margin Selling and administrative expenses 352,000 473,000 243,000 636,000 Seling expenses Direct advertising General advertising Sales salaries Delivery salaries Store rent Depreciation of store fxtures Depreciation of delivery equipment 115,80031,000 2000 42,800 4,552 12,000 157,000 42,000 205,000 46.420 24,000 4,965 63,000 14,000 74,000 19,820 2483 51,00043,000 4,000 14000 68000 63,000 18,000 8,600 8,0008,000 Total selling expenses 602,220 194,552 181083226.585 Store management salaries General office salaries 70,000 43,000 94,600 24,000 37,500 20,000 22,000 21,000 6.310 2,000 30,000 7.500 1,700 12.600 7,586 4.13 27,000 17,793 32,600 8 000 13.200 8 276 8,897 Insurance on foxtures and inventory Employment taxes General office expenses-other 8,500 85.135 Total administrative expenses Total operating expenses Net operating income (loss) 289,100 97,096 106,869 91,320 291648 266.218 333.454 460,680 181,352 $(23.218) 302546 Alocated on the basis of sales dolars Management is very concened about the Downtown Store's inability to show a proft, and consideratiorn s being given to closing the store. The company has asked you to make a recommendation as to what oourse of action shouid be taken The following additional information is avaiable about the store 10.00 points Problem 12-23 Close or Retain a Store [LO2] Thrifty Markets, Inc, operates three stores in a large metropolitan area. The company's segmented absorption costing income statement for the last quarter is given below Thrifty Markets, Inc. Income Statement For the Quarter Ended March 31 Uptown Downtown Westpark Total Store Store 2,900,000 $1,100,000 $600,000 $1,200,000 ,548,000 627,000 357,000564,000 Cost of goods sold Gross margin Selling and administrative expenses 352,000 473,000 243,000 636,000 Seling expenses Direct advertising General advertising Sales salaries Delivery salaries Store rent Depreciation of store fxtures Depreciation of delivery equipment 115,80031,000 2000 42,800 4,552 12,000 157,000 42,000 205,000 46.420 24,000 4,965 63,000 14,000 74,000 19,820 2483 51,00043,000 4,000 14000 68000 63,000 18,000 8,600 8,0008,000 Total selling expenses 602,220 194,552 181083226.585 Store management salaries General office salaries 70,000 43,000 94,600 24,000 37,500 20,000 22,000 21,000 6.310 2,000 30,000 7.500 1,700 12.600 7,586 4.13 27,000 17,793 32,600 8 000 13.200 8 276 8,897 Insurance on foxtures and inventory Employment taxes General office expenses-other 8,500 85.135 Total administrative expenses Total operating expenses Net operating income (loss) 289,100 97,096 106,869 91,320 291648 266.218 333.454 460,680 181,352 $(23.218) 302546 Alocated on the basis of sales dolars Management is very concened about the Downtown Store's inability to show a proft, and consideratiorn s being given to closing the store. The company has asked you to make a recommendation as to what oourse of action shouid be taken The following additional information is avaiable about the store