Homework: Cost Concepts and Behavior Assignment i Saved Cornwall Street Store Income Statement Differential Revenues and Costs For the Year Ending February 28 Sales revenue $ 13,200,000 Differential 3 points Costs Cost of goods sold 6, 189,000 Differential Advertising 1,430,000 Differential eBook Store administrative salaries 984,000 Differential Print Sales commissions 1,065,000 Differential Leases and utilities 2, 109,000 Differential Allocated corporate support 1,631,000 Not differential Total costs $ 13,408,000 Net differential gain before income tax expense Tax expense at 25% Differential Homewaork: Lost Loncepts and Benavior Assignment g saved Help Save Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city. Management at SAG is concerned about declining sales and profitability of the Cornwall store and believes that outlet has been a drag on profits in recent years. The most recent income statement for the Cornwall 3 store follows. points SWAIN ATHLETIC GEAR Cornwall Street Store Income Statement eEook For the Year Ending February 28 Sales revenue 13,288,008 Print Costs Cost of goods sold 6,182,008 Advertising 1,430,800 Store administrative salaries 984,008 Sales commizszions 1,865,800 Leazes and utilities 2,189,088 Allocated corporate support 1,631,000 Total costs $ 13,488,088 Net loss before tax benefit % (208,008) Tax benefit at 25% (52,088) Net loss $ (156,009) The CFO at SAG has asked for your advice on closing the Cornwall Street store. If the Cornwall Street store is closed, neither total corporate support costs nor operations or costs of the other stores are expected to change. lhe CFO at SAG has asked for your advice on closing the Cornwall Street store. It the Cornwall Street store is closed, neither total corporate support costs nor operations or costs of the other stores are expected to change. Required: a. Using the worksheet below, determine which revenues and cosis are probably differential for the decision 1o close the Cornwal Street store. b. What will be the effect on SAG's income if the Cornwall Street store is closed