Decision 4 Wool Inc. currently has two retail locations. Store A is located in the downtown core, while Store B is located in the local shopping mall. The most recent monthly income statement for Wool Inc. is given below: Sales Less variable expense Contribution margin Less traceable fixed expense Segment margin Less common fixed expense Operating Income Total Store A Store B $2,100,000 $1,300,000 $800,000 1,260,000 $882.000 37800 $840,000 $418,000 $422,000 420.000 231.000 189.000 $420,000 $187,000 $233,000 350.000 210.000 140.000 $70,000 $23.000 $93,000 Wool inc. is considering closing Store A. If Store A is closed, one-fourth of its traceable fixed expenses would continue to be incurred. Store A has also become a space where local crafters come to socialize. The closing of Store A would result in a 20% decrease in sales in Store Bas the local crafters would be upset and switch to a different brand. Wool Inc. allocates common fixed expenses on the basis of sales dollars and none of these costs would be saved if a store were shut down Required: a. Should Wool Inc. close Store A? Show all calculations. b. The President of Wool Inc does not understand your recommendation. Briefly support your recommendation by explaining why Store A should be kept open or shut down