The Alpha Omega Food Giant Company owns and operates a chain of 125 supermarket

The Alpha Omega Food Giant Company owns and operates a chain of 125 supermarkets.

Budgeted data for the Cypress store are as follows:

Annual sales

$425000

Annual cost of goods sold and other operating expenses

382000

Annual building ownership costs (not included above)

20000

The company can lease the building to a large flower shop for $4000 per month. Decide whether to continue operating this store or to lease using:

1. The total project (or comparative statement) approach

2. The incremental (or relevant cost) approach

3. The opportunity cost approach