Power Music owns five music stores, where it sells music, instruments, and supplies. In addition, it...

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Power Music owns five music stores, where it sells music, instruments, and supplies. In addition, it rents instruments. At th

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Answer 1

Answer #1

Solution:

Cost Savings in closing Fifth Avenue Store
Payroll, direct labor, and supervision	158000
Rent	53300
State taxes	8000
Insurance on inventory	60200
Depreciation	0
Administration and general office ($65000*15%)	9750
Interest for inventory carrying costs	14000

Total Cost savings	303250

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Answer 2

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