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Question 10 (8 points) Sophie Company is a retailer in Nova Scotia operating three (3) locations; Truro (T), Windsor (W), and Yarmouth (Y). The most recent monthly income statement for Sophie is given below: (Amounts are small for exam purposes.) Due to higher rent costs the company is considering closing the Truro store. If Truro store were closed, 30% of its traceable fixed expenses would continue to be incurred. Also, the closing of Truro would result in a 45% increase in sales in both the other stores. Required: Should Sophie close the Truro store? Support your answer by determining the overall increase or decrease in the operating income of the company if the Truro store is closed (Show your work). Question 10 (8 points) Sophie Company is a retailer in Nova Scotia operating three (3) locations; Truro (T), Windsor (W), and Yarmouth (Y). The most recent monthly income statement for Sophie is given below: (Amounts are small for exam purposes.) Due to higher rent costs the company is considering closing the Truro store. If Truro store were closed, 30% of its traceable fixed expenses would continue to be incurred. Also, the closing of Truro would result in a 45% increase in sales in both the other stores. Required: Should Sophie close the Truro store? Support your answer by determining the overall increase or decrease in the operating income of the company if the Truro store is closed (Show your work)

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