Specify if the closing store 1 will "increase" or "decrease" operating income and what is the $ dollar value of the increase or decrease in operating income?

Question 4: Which of the following would most likely be included as part of manufacturing overhead in the production of toy trains?

a. The amount paid to the individual who assemble the trains b. The commission paid to the salesperson who sells the trains

c. The insurance costs for the factory d. The cost of materials used in the trains

Northern Stores is a retailer in the upper Midwest. The most recent monthly income statement for Northern Stores is given below: Total Sales Variable expenses Contribution margin Common fixed expenses Net operating income Store Store 11 500,000 2,000,000 300,000 1,000,000 200,000 1,000,000 350,000 500,000 (150,000) 500,000 2,500,000 1,300,000 1,200,000 850,000 350,000 Northern is considering closing Store I. The closing of Store I would result in a 10% decrease in sales in Store II. None of the fixed costs would be saved if Store 1 were shut down. In other words, total company fixed costs would remain the same if Store 1 were shut down