InterJardin VEXIN is a franchisee that

runs two garden centres, one in Magny en Vexin and the other in Gisors. Their

operating profit and loss account for N is as follows:

Central

indirect costs are allocated to shops in proportion to their sales margin.

At

the management meeting, the finance and accounts manager suggests closing the

Gisors shop:

She

explained that by closing the Gisors shop, the company would incur costs of €250,000

(redundancy costs, costs inherent in the closure, including a loss on the sale

of equipment from the Gisors shop),

However,

central indirect costs would fall by €100,000 (thanks to the simplification of

the logistics organisation).

Calculate the impact of the closure of

Gisors on InterJardin Vexin's operating income