The Potter Corporation has two stores - North Store and South Store. The stores have the...

 

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The Potter Corporation has two stores - North Store and South Store. The stores have the following revenues and expenses: Sales Variable Costs Fixed Costs Allocated Common Fixed Costs Net Operating Income (Loss) North Store $570,000 $226,000 $168,000 $129,600 $46,400 South Store $467,500 $222,800 $149,400 $159.800 $(64,500) The management of Potter is considering closing the South Store. If the South Store is closed, 'fixed costs' could be avoided but 'Allocated Common Fixed Costs' would be unaffected by this decision. Given these data, closing the South Store would result in an overall company net operating income (loss) of: The Potter Corporation has two stores - North Store and South Store. The stores have the following revenues and expenses: Sales Variable Costs Fixed Costs Allocated Common Fixed Costs Net Operating Income (Loss) North Store $570,000 $226,000 $168,000 $129,600 $46,400 South Store $467,500 $222,800 $149,400 $159.800 $(64,500) The management of Potter is considering closing the South Store. If the South Store is closed, 'fixed costs' could be avoided but 'Allocated Common Fixed Costs' would be unaffected by this decision. Given these data, closing the South Store would result in an overall company net operating income (loss) of:

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