Question: A segmented contribution margin statement for Cleen Inc. for November 2022 is presented below. Additional information regarding Cleen Inc.'s operations follows the statement. Victoria Store

A segmented contribution margin statement for Cleen Inc. for November 2022 is presented below. Additional information regarding Cleen Inc.'s operations follows the statement. Victoria Store Zambra Store Total Sales $87,000 $123,000 $210,000 Less: Variable costs $34,800 $86,100 $120,900 Contribution margin $52,200 $36,900 $89,100 Less: Direct fixed costs $23,000 $44,000 $67,000 Store segment margin $29,200 $-7,100 $22,100 Less: Common fixed costs $7,000 $7,000 $14,000 Operating Income $22,200 $-14,100 $8,100 Each store's direct fixed costs would be eliminated if either store were closed and the closed store's common fixed costs would be allocated to the store that remained open. Cleen Inc. allocates common fixed costs to each store equally. Management estimates that closing the Zambra Store would result in a 15% decrease in Victoria Store sales, while closing the Victoria Store would not affected Zambra Store sales. Do not enter dollar signs or commas in the input boxes. Only use the negative sign for a decrease in operating income. a) What is the change in total operating income if Cleen Inc. decides to close the Zambra Store? Zambra Store's contribution margin Answer Zambra Store direct fixed costs Answer Victoria Store lost contribution margin Answer Change in total operating income Answer b) Cleen Inc. is considering a promotional campaign at the Zambra Store that would not affect the Victoria Store. The extra promotional cost of $3,100 is expected to increase sales by 10%. What is the change in operating income? Change in contribution margin Answer Extra promotional cost Answer Change in operating income

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