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. 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. Begin 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. Enter a "0" if the cost is not relevant. If net effect is an operating loss enter the amount with parentheses or a minus sign.) (Loss in Revenues) Savings in Costs - Requirements 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 1. By closing down the Rhode Island store, Martinez can reduce overall corporate overhead costs by S45,000. 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 $18,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Total operating costs Effect on operating Income (loss) Print Done