Question: Please provide a proper calculations and the explanation for the question. Thank you Northern Stores is a retailer in British Columbia. The most recent monthly

Please provide a proper calculations and the explanation for the question. Thank you

Northern Stores is a retailer in British Columbia. The most recent monthly statements are below. Northern is considering closing Store I. If it is closed one quarter of its traceable fixed expenses would continue to be incurred. Also the closing of Store I would result in a 20% decrease in sales in Store II.Northern allocated common fixed expenses on the basis of sales dollars, none of which would be saved it a store shuts down.

Northern Stores
Total Store I Store II
Sales $ 2,100,000 $ 1,300,000 $ 800,000
Variable Expenses 1,260,000 882,000 378,000
Contribution Margin 840,000 418,000 422,000
Traceable Fixed expenses 420,000 231,000 189,000
Common expenses allocated 350,000 210,000 140,000
Operating Income/Loss $ 70,000 $ (23,000) $ 93,000

Required:

Recommend which store, if any, should be eliminated. show a report in good form to support your answer.

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