By closing down the Rhode Island store, Rivera can reduce overall corporate overhead costs by $48,000. Calculate Rivera'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. Calculate Rivera'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 $23,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $7,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Rivera 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.) Incremental Revenues (Incremental Costs) Connecticut Store Rhode Island Store $ 1,050,000 $ 860,000 Revenues Operating costs Cost of goods sold Revenues Operating costs Cost of goods sold 790,000 660,000 Lease rent (renewable each year) Labor costs (paid on an hourly basis) Lease rent (renewable each year) 91,000 74,000 Labor costs (paid on an hourly basis) 46,000 44,000 Depreciation of equipment Utilities (electricity, heating) Corporate overhead Depreciation of equipment 21,000 23,000 Utilities (electricity, heating) 40,000 53,000 51,000 45,000 Allocated corporate overhead Total operating costs 1,039,000 899,000 Total operating costs Effect on operating income (loss) $ 11,000 $ (39,000) Operating income (loss)