Question 2 Condensed monthly operating income data for Rike's Inc. Hoe May follow 520 Urban Store Suburban Store Total Sales $80.000 $120,000 $200.000 Variable Costs (32,000) 84,000) (116000) Traceable direct) fixed costs (20,000) (40,000) Store segment margin 28,000 14.000) Common (indirect) fixed costs (4.000) 16,000) $24.000 $110.000) 160.000) 24000 (10,000) Operating income $14.000 Rike's is considering closing its Suburban Store. It has gathered the following information in the regard. One-fourth of Suburban's traceable fred costs will continue if the store is closed. Rike's allocates common fixed costs to each store on the basis of 5% of sales dollars. If the Suburban Store were shut down, the Urban Store would be charged with the entire 510.000 cl common fixed costs. Management estimates that closing its Suburban Store would result in a 10% decrease in is Urban Store sales . A decision by Rike's to close the Suburban Store would result in a monthly increase decrease in Rike's operating income of $(30,800) O $4,000 O $10,000 $(10,800) $(14,000)