Camp Corporation runs two stores, one in Medfield and one in Oakland. Operating income for each store in 2020 is as follows: (Click the icon to view the operating income.) The equipment has zero disposal value. Requirement 1. By closing down the Oakland store, Camp can reduce overall corporate overhead costs by $88,000. Should Camp Corporation close down the Oakland store? (Complete all input fields. Enter losses in revenues as a negative amount. Enter a "0" if the cost is not relevant. If the net effect is an operating loss enter the amount with parentheses or a minus sign.) (Loss In Revenues) X Savings in Costs Data table from Closing Oakland Store Medfield Oakland Revenues Store Store Operating costs Revenues S 2,300,000 S 1,550,000 Cost of goods sold Operating costs Variable operating costs (labor, utilities) Cost of goods sold 1,100,000 1,310,000 Lease rent (renewable each year) Variable operating costs (labor, utilities) 150,000 135,000 Depreciation of equipment Lease rent (renewable each year) 158,000 159,000 Allocated corporate overhead Depreciation of equipment 45,500 41,000 Total operating costs 87,000 Allocated corporate overhead 81,000 Effect on operating income (loss) Total operating costs 1,540,500 1,726,000 759,500 S (176,000) - X Operating income (loss) Requirements S Print Done 1. By closing down the Oakland store, Camp can reduce overall corporate overhead costs by $88,000. Should Camp Corporation close down the Oakland store? 2. Instead of closing down the Oakland store, Camp Corporation is thinking of opening another store with revenues and costs identical to the Oakland store (including a cost of $47,000 to acquire equipment with a 1-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $6,000. Should Camp Corporation open another store like the Oakland store? Explain. Clear all Check