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MONTHLY OPERATING INCOME DATA / TUTORIALOUTLET DOT COM

QUESTION 8 (Not a repeat question.) Condensed monthly operating income data for Korbin Inc. for May follow: Urban Suburban Total Store Store Sales $80,000 $120,000 $200,000 Variable costs 32,000 84,000 116,000 Contribution $48,000 $ 36,000 $84,000

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MONTHLY OPERATING INCOME DATA / TUTORIALOUTLET DOT COM

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  1. MONTHLY OPERATING INCOME DATA / TUTORIALOUTLET DOT COM

  2. MONTHLY OPERATING INCOME DATA / TUTORIALOUTLET DOT COM Monthly operating income data  FOR MORE CLASSES VISIT www.tutorialoutlet.com QUESTION 8 (Not a repeat question.) Condensed monthly operating income data for Korbin Inc. for May follow: Urban Suburban Total Store Store Sales $80,000 $120,000 $200,000 Variable costs 32,000 84,000 116,000 Contribution $48,000 $ 36,000 $84,000 margin Direct 20,000 40,000 60,000 fixed costs Store segment $28,000 $ (4,000) $24,000 margin Common 4,000 6,000 10,000 fixed cost Operating income $24,000 $(10,000) $14,000 Additional information regarding Korbin's operations follows: One—fourth of each store's direct fixed costs will continue if either store is closed. Korbin allocates common fixed costs to each store on the basis of sales dollars. Management estimates that closing Suburban Store would result in a 10% decrease in Urban Store's sales, whereas closing Urban Store would not affect Suburban Store's sales.

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