Gino's, Inc. operates three different restaurants in various central Jersey locations. 2019 financial information for the various locations is presented below. Expecting the same results in 2020, Gino's is considering closing the Spotswood location, because of its high operating costs. If it closed this location, Gino's would be able to eliminate $10,000 of the allocated overhead costs. Should Gino's close the Spotswood location?

	Milltown	East Brunswick	Spotswood
Revenues	$300,000	$250,000	$460,000
Costs:
Food and beverage	28,000	25,000	150,000
Labor	45,000	38,000	175,000
Lease (cancellable)	65,000	47,000	100,000
Depreciation on kitchen equipment	16,000	12,000	20,000
utilities	10,000	7,000	12,000
allocated overhead	30,000	30,000	40,000
Operating profits	106,000	91,000	-37,000

		No, because total operating profit would decrease by $3,000.
		Yes, because total operating profit would increase by $7,000.
		No, because total operating profit would decrease by $13,000.
		Yes, because total operating profit would increase by $37,000.