Northern Apparel Company owns two stores and management is considering eliminating the South store due to declining sales. Segmented contribution income statements are as follows and common fixed costs are allocated on the basis of sales.NorthSouthTotalSales$475,000120,000$595,000Variable costs242,50069,000311,500Direct fixed costs72,50035,500108,000Segment margin160,00015,500175,500Allocated fixed costs104,50048,000152,500Net Income$55,500($32,500)$23,000Northern feels that if they eliminate the South store, sales in the North store will decline by 20%. If they close the South store, overall company net income wiall?
We help you get better grades, improve your productivity and get more fun out of college!!
Get 25% Discount on Your First Order
How it works – it’s easy
Place your Order
Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.
Make a payment
The total price of your order is based on number of pages, academic level and deadline.
We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.
Once complete, we’ll send your assignment via the email provided on the order form.