I DON'T KNOW WHY THE CORPORATE OVERHEAD ISN'T RIGHT. I TOOK $37,000+$6,000.

PLEASE HELP THANKS!

Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: B (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, Sanchez can reduce overall corporale overhead costs by $39,000. Calculate Sanchez'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. Begin by calculating Sanchez's operating income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses in revenues as a negative amount. Enter a "O" if the cost is not relevant. If the net effect is an operating loss enter the amount with parentheses or a minus sign.) a - X X - X Data table Requirements Connecticut Rhode Island Store Store $ 1,120,000 $ 810.000 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $39,000. Calculate Sanchez'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? in. 2. Calculate Sanchez'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 $22,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporale overhead costs by $6,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. 725,000 90,000 600,000 77,000 43,000 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 Operating income (los) 43,000 27,000 45,000 48,000 22,000 54,000 37,000 Print Done 978,000 833.000 $ 142,000 $ (23,000) (Loss in Revenues) Savings in Costs (810,000) Revenues $ Operating costs 600,000 77,000 Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) 43,000 0 54,000 43000 Corporate overhead 817000 Total operating costs Effect on operating income (loss) 7000