Martinez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2020 is as follows: (Click to view the operating income for the stores.) - X Data table Connecticut Rhode Island Store Store $ 1,100,000 $ 890,000 670,000 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) 750,000 87,000 70,000 48,000 39,000 26, poo 38,000 49,000 25,000 48,000 42,000 Allocated corporate overhead O Anna - X Data table CHIUDOU OYO.UUU 750,000 670,000 87,000 70,000 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 48,000 26,000 38,000 49,000 39,000 25,000 48,000 42,000 998,000 894,000 $ 102,000 $ (4,000) Operating income (loss) 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 $25,000 to acquire equipment with a 1-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $2,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. More info The equipment has a zero disposal value. In a senior management meeting, Maria 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