Homework: C... Question 16, E11-30 (si... Part 1 of 4 HW Score: 77.43%, 15.49 of 20 points Points: 0 of 1 Save Martinez 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) Click the icon to view the add or drop segments information Read the requirements Requirement 1. By closing down the Rhode Island store Martinez can reduce overall corporate overhead costs by S45,000 Calcutato Martinez's operating income it it closes the Rhode Island store Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain Bogin by calculating Martinez's operating income if it closes the Rhode Island store (Complete all answer boxes Enter losses in revenues as a negative amount Entora "o" it the cost is not relevant it the not effect is an operating loss enter the amount with parentheses of a mussion) (Loss in Revenues) Savings in 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) jence stores, one in Connecticut and one in ach store in 2017 is as follows: e for the stores.) (Click the icon to view the add-or-drop se Read the requirements Rhode Island store, Martinez can reduce overall corporate overhead costs by $45,000. Calcule eria Lopez's statement about the effect of closing the Rhode Island store correct? Explain ting income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses in rev Data table Connecticut Rhode Island Store Store $ 1,120,000 $ 830,000 Revenues Operating costs 775 000 86,000 700.000 78,000 Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) 47.000 42,000 25,000 44.000 52.000 24,000 51,000 40,000 Allocated corporate overhead 1,024,000 940,000 Total operating costs $ 96,000 $ (110,000) Operating income (loss) Question 16, E11-30 (si... Part 1 of 4 HW Score: 77.43%, 15.49 of 20 point O Points: 0 of 1 o convenience stores, one in Connecticut and one in ome for each store in 2017 is as follows: ing income for the stores.) BE (Click the icon to view the add-or-drop se Rea More Info ements down the Rhode Island store, Martinez can reduce overall corporate overhead costs by $45,000. Calcule ore. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain z's operating income if it closes the Rhode Island store (Complete all answer boxes. Enter losses in rev Tele More info The equipment has a zero disposal value. In a senior management meeting, Mana Lopez, the management accountant at Martinez Corporation, makes the following comment, "Martinez can increase its profitability by closing down the Rhode Island store or by adding another store like it." ead nh nen Print Done atin Utilities (electricity, heating) Allocated corporate overhead 44.000 52.000 51 000 40.000 el 1,024,000 Total operating costs 940,000 (110.000) $ 96 000 $ Operating income (loss) C... Question 16, E11-30 (si... Part 1 of 4 HW Score: 77.43%, 15.49 of 20 points O Points: 0 of 1 two convenience stores, one in Connecticut and one in come for each store in 2017 is as follows: ating income for the stores.) (Click the icon to view the add-or-drop segme Read the requirements Requirements down the Rhode Island store, Martinez can reduce overall corporate overhead costs by $45,000 Calculate store Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain hez's operating income if it closes the Rhode Island store. (Complete all answer boxes Enter losses in revenu - Requirements 1. By closing down the Rhode Island store, Martinez can reduce overall corporate overhead costs by $45,000 Calculate Martinez'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. 2. Calculate Martinez'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 $24,000 to acquire equipment with a one-year useful life and zero disposal value) Opening this store will increase corporate overhead costs by $5,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain Print Done Torat operating costs