Exercise $22\mathrm{.}7($Algo$)$ Closing an Unprofitable Business Unit $($LO$22-1,$ LO$22-2,$ LO$22-3,$ LO$22-5)$

Shown as follows is a segmented income statement for Drexel$-$Hall during the current month:

All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store $1$ was established first and was built at a lower cost than were Stores $2$ and $3.$ This lower cost results in less depreciation expense for Store $1.$ Store $2$ follows a policy of minimizing both costs and sales prices. Store $3$ follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores.

Top management of Drexel$-$Hall is considering closing Store $3.$ The three stores are close enough together that management estimates closing Store $3$ would cause sales at Store $1$ to increase by $$51,000,$ and sales at Store $2$ to increase by $$139,000.$ Closing Store $3$ is not expected to cause any change in common fixed costs.

Required:

Compute the increase or decrease that closing Store $3$ should cause in:

a$.$ Total monthly sales for Drexel$-$Hall stores.

b$.$ The monthly responsibility margin of Stores $1$ and $2.$

c$.$ The company's monthly income from operations.