Question: please answer 1 and 2 please can you answer required 1,2 and 3 a. Supplies costs Relevant, since costs differ between alternatives Power costs. Not

please answer 1 and 2
please answer 1 and 2 please can you answer required 1,2 and
please can you answer required 1,2 and 3 3 a. Supplies costs Relevant, since costs differ between alternatives Power costs.
Not relevant since the costs do not differ between alternatives Inspection costs
Relevant, since costs differ between alternatives Assembly costs. Relevant, since costs differ

a. Supplies costs Relevant, since costs differ between alternatives Power costs. Not relevant since the costs do not differ between alternatives Inspection costs Relevant, since costs differ between alternatives Assembly costs. Relevant, since costs differ between alternatives b. 2. a. Relevant cost per unit: 3 2.c. Maximum acceptable purchase price: Thrify Narkets inc: lnome stemero Forve Quarter Ended werch al Selling and administrative expenses: Selling expenses: DirectadvertisingGeneraladvertising.SalessalariesDeliverysalaries.StorerentDepreciationofstorefixtures...118,50020,000157,00030,000215,00046,95040,0007,20052,00010,00070,00018,30036,0004,80045,00010,00065,0008,80042,5008,00060,00010,00080,00019,850 Depreciation of delivery Total selling expenses. Administrative expenses: Store management salaries. General office salaries*. Utilities............. inventory...............Employmenttaxes.25,50036,0008,00012,0009,00010,2008,50013,800 General office Manageraeat is very copcemed about the Downtowe Store 's iratilify to ihoer a peufe, und coesad. ereion is being given to closieg the thore. The congusy has akind you to male a rooprumenterice as ta What course of action should be taken. The followites adifitiosed infocmerion in waildble about de atore: a . The manager of the store has been with dit congury for masy ycars he woold be rebined. and transferred to another position in the eormpany if the store wert closed. His salary it. be hircd we fill the cother position at a selary of 55.000 per moeth 6. The lease on the buitaing bousing the Downtown 5 tore cia be krown with pe petaly f. The finsorea being used in the Downawen Store weald be tranufened to the ocver avo phices if the Drewintows Siore were closed. 4. The cempany's empioymeat taxe are 12.1 of salanics. 6. A single delivery crev serves all three aiotes. Ooe delivery persat obold be diactarged if the oquipmest would be disunitused io the other skires. The teputpentas doea por near gus theourh use, bet at does eventrally brixarse obsiele. f. One-third of dic Downtown Siare's insurance telaees so ity finere. The gencral office salayies and odver expenses telate ta ele groeral massyitient of Thrifly would be diacharged if the aore ware slosed. Thid sagliges a congenexing unuence the 56,000 per quarter. fegirind agrincen of Totifiy Marbet, Isc? 1. THRIFTY MARKETS, INC. Schedule Gross margin lost if the store is closed Less costs that can be avoided: Direct advertising Sales salaries Delivery salaries Store rent Store management salaries General office salaries Utilities Insurance on inventories Employment taxes* Decrease in company net operating income if the Downtown Store is closed *Salaries avoided by closing store: Sales salaries Delivery salaries Store management salaries General office salaries Total salaries Employment tax rate Employment taxes avoided 3. Computations Gross margin lost if the Downtown Store is closed Gross margin gained at the Uptown Store Net loss in gross margin Less avoidable costs if Downtown Store is closed Net advantage of closing the Downtown Store

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