Gastonia Store Concord Store Total $200,000 $120,000 S 320,000 Revenue Operating costs Cost of goods sold Rent (renewable each year) Hourly wages Depreciation of equipment Utilities Allocated corporate overhead 75,000 12,000 35,000 10,000 4,000 30,000 166,000 60,000 7,000 26,000 10,000 3,000 135,000 19,000 61,000 20,000 7,000 50,000 292,000 Total operating costs Operating income (loss) 126,000 The company's management is contemplating closing the Concord Store because it has been consistently reporting a loss. The equipment has a zero disposal value. By closing down the Concord Store, the company can reduce overal corporate overhead costs by $5,000 What will be the effect on Charlotte Company's operating income if the Concord Store is closed? A) increase by $19,000 B) increase by $6,000 C) decrease by $19,000 D) decrease by $6,000 5. 6. Refer to the original data. For the next year, the company is considering keeping the Concorod Store open and adding a new store in Pineville. The budgeted revenues and costs for the Pineville Store are identical to the revenues and costs of the Concord Store except for (a) no new equipment will be purchased, but instead equipment will be rented for $10,000 per year and (b) opening the Pineville Store will increase corporate overhead costs by S12,000. If the Pineville store is open, what will be the company's budgeted operating income for next year? A) S22,000 B) S30,000 C) S37,000 D) S10,000