Both requirements, please!
E11-30 (book/static) B Question Help a (Click the id 0 Requirements Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) Read the require Requirement 1. By closing down the Rhode Island closing the Rhode Island store correct? Explain. Data Table Begin by calculating Sanchez's operating income if amount with parentheses or a minus sign.) 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $44,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. 2. Calculate Sanchez's operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to the Rhode Island store (including a cost of $22,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Connecticut Rhode Island Store Store $ 1,070,000 $ 860,000 Revenues Operating costs Cost of goods sold Lease rent (renewable each year) 750,000 90,000 660,000 75,000 Print Done Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) basis) Depreciation of equipment Utilities (electricity, heating) 42,000 25,000 43,000 50,000 42,000 22,000 46,000 40,000 Corporate overhead Allocated corporate overhead 885,000 Total operating costs Total operating costs 1,000,000 70,000 $ $ (25,000) Effect on operating income (loss) Operating income (loss) Print Done E11-30 (book/static) B Question Help a (Click the id 0 Requirements Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) Read the require Requirement 1. By closing down the Rhode Island closing the Rhode Island store correct? Explain. Data Table Begin by calculating Sanchez's operating income if amount with parentheses or a minus sign.) 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $44,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. 2. Calculate Sanchez's operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to the Rhode Island store (including a cost of $22,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Connecticut Rhode Island Store Store $ 1,070,000 $ 860,000 Revenues Operating costs Cost of goods sold Lease rent (renewable each year) 750,000 90,000 660,000 75,000 Print Done Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) basis) Depreciation of equipment Utilities (electricity, heating) 42,000 25,000 43,000 50,000 42,000 22,000 46,000 40,000 Corporate overhead Allocated corporate overhead 885,000 Total operating costs Total operating costs 1,000,000 70,000 $ $ (25,000) Effect on operating income (loss) Operating income (loss) Print Done
