(Click the icon to view the add or drop segments information.) Perez 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 requirements. i Data Table - X ht about the effect of closing the Requirement 1. By closing down the Rhode Island store, Perez can reduce overall corporate overhead costs by S42,000. Ca Rhode Island store correct? Explain. Begin by calculating Perez's operating income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses with parentheses or a minus sign.) perating loss enter the amount Connecticut Rhode Island Store Store $ 1,080,000 $ 830,000 (Loss In Revenues) Savings In Costs 700.000 670,000 89.000 74.000 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) Allocated corporate overhead Total operating costs Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (pald on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Corporate overhead 45.000 50.00 29,000 44,000 47.000 23,000 48.000 959,000 39,000 897,000 (67,000) Total operating costs 5 121,000 $ Operating income (loss) Effect on operating income (loss) Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. Print Done Lopez is that Perez Corporation's operating income would increase if it closes down the Rhode Island store as shown by the analysis above. Note that by closing down the Rhode Island Store Perez Corporation will save none of the because this is a past cost. Requirement 2. Calculate Perez's operating income if it keeps the Rhode Island store open and opens mother store will 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 disexsal valuc). Opening this store will increase corporale overhead costs by S8,000. Is Maria Lopez's statement about the effect of king another store like the Rhode Island store correci? Perez Corporation runs twn convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store (Click the loon to view the add-or-drop segments Information. in 2017 is as follows: Read the requirements. (Click to view the operating income for the stores.) 18 Mana LODEZ Statement VOLL UTE ENCLOF USING UTE NIUE san Store DUTECL! Explam. Lopez is that Perez Corporation's operating Income would increase if it closes down the Rhode Island store as shown by the analysis above. Note that by closing down the Rhode Island store, Perez Corporation will save none of the because this is a past cost. Requirement 2. Calculate Perez's operating income it 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 weeful lute and zero disposal value). Opening this store will increase corporate overhead costs by $6,00D. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Begin by calculating Perez'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. (If the net effect is an operating loss, enter the amount with parentheses or a minus algn.) Incremental Revenues (Incremental Costs) 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) Corporate overhead Total operating costs Effect on operating income (loss) Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Lopez is that Perez Corporation's operating income would increase if it adds another store like the Rhode Island store as shown by the analysis above. (Click the icon to view the add or drop segments information.) Perez 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 requirements. i Data Table - X ht about the effect of closing the Requirement 1. By closing down the Rhode Island store, Perez can reduce overall corporate overhead costs by S42,000. Ca Rhode Island store correct? Explain. Begin by calculating Perez's operating income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses with parentheses or a minus sign.) perating loss enter the amount Connecticut Rhode Island Store Store $ 1,080,000 $ 830,000 (Loss In Revenues) Savings In Costs 700.000 670,000 89.000 74.000 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) Allocated corporate overhead Total operating costs Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (pald on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Corporate overhead 45.000 50.00 29,000 44,000 47.000 23,000 48.000 959,000 39,000 897,000 (67,000) Total operating costs 5 121,000 $ Operating income (loss) Effect on operating income (loss) Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. Print Done Lopez is that Perez Corporation's operating income would increase if it closes down the Rhode Island store as shown by the analysis above. Note that by closing down the Rhode Island Store Perez Corporation will save none of the because this is a past cost. Requirement 2. Calculate Perez's operating income if it keeps the Rhode Island store open and opens mother store will 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 disexsal valuc). Opening this store will increase corporale overhead costs by S8,000. Is Maria Lopez's statement about the effect of king another store like the Rhode Island store correci? Perez Corporation runs twn convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store (Click the loon to view the add-or-drop segments Information. in 2017 is as follows: Read the requirements. (Click to view the operating income for the stores.) 18 Mana LODEZ Statement VOLL UTE ENCLOF USING UTE NIUE san Store DUTECL! Explam. Lopez is that Perez Corporation's operating Income would increase if it closes down the Rhode Island store as shown by the analysis above. Note that by closing down the Rhode Island store, Perez Corporation will save none of the because this is a past cost. Requirement 2. Calculate Perez's operating income it 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 weeful lute and zero disposal value). Opening this store will increase corporate overhead costs by $6,00D. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Begin by calculating Perez'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. (If the net effect is an operating loss, enter the amount with parentheses or a minus algn.) Incremental Revenues (Incremental Costs) 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) Corporate overhead Total operating costs Effect on operating income (loss) Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Lopez is that Perez Corporation's operating income would increase if it adds another store like the Rhode Island store as shown by the analysis above