The condensed monthly estimated income data for Kaidama Stores are presented in the following table for...
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The condensed monthly estimated income data for Kaidama Stores are presented in the following table for November 2022: Mall Store Downtown Store Total Sales P 80,000 P 120,000 P 200,000 - Variable Expenses 32,000 84,000 116,000 Contribution Margin P 48,000 P 36,000 P 84,000 - Fixed Expenses 20.000 40,000 60,000 Operating Income P 28,000 (P 4,000) P 24,000 Additional information • Management estimates that closing the Downtown Store would result in a 10 percent decrease in Mall Store sales, while closing the mall store would not affect Downtown Store sales. • One-fourth of each store's fixed expenses would continue through December 31, 2022 if either store were closed. • The operating results for November 2012 are representatives of all months. How much is the decrease in Kaidama monthly operating income during 2022 if the Downtown Store is closed? O P 10,800 P 6,000 O P 40,800 O P 25,200 The condensed monthly estimated income data for Kaidama Stores are presented in the following table for November 2022: Mall Store Downtown Store Total Sales P 80,000 P 120,000 P 200,000 - Variable Expenses 32,000 84,000 116,000 Contribution Margin P 48,000 P 36,000 P 84,000 - Fixed Expenses 20.000 40,000 60,000 Operating Income P 28,000 (P 4,000) P 24,000 Additional information • Management estimates that closing the Downtown Store would result in a 10 percent decrease in Mall Store sales, while closing the mall store would not affect Downtown Store sales. • One-fourth of each store's fixed expenses would continue through December 31, 2022 if either store were closed. • The operating results for November 2012 are representatives of all months. How much is the decrease in Kaidama monthly operating income during 2022 if the Downtown Store is closed? O P 10,800 P 6,000 O P 40,800 O P 25,200
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Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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