Question: Required: a . A decision by Cosmo Inc. to close the Town Store would result in a monthly increase ( decrease ) in Cosmo's operating
Required:
a A decision by Cosmo Inc. to close the Town Store would result in a monthly increase decrease in Cosmo's operating income during next year of how much?
b Cosmo is considering a promotional campaign at the Town Store that would not affect the Mall Store. Increasing monthly promotional expenses at the Town Store by $ in order to increase Town Store sales by percent would result in a monthly increase decrease in Cosmo's operating income during next year of how much?
c Half of Town Store's dollar sales are from items sold at variable cost to attract customers to the store. Cosmo is considering deleting these items, a move that would reduce the Town Store's direct fixed expenses by percent and result in the loss of percent of Town Store's remaining sales volume. This change would not affect the Mall Store. A decision to eliminate the items sold at cost would result in a monthly increase decrease in Cosmo's operating income during next year of how much?
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