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o Perez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2014 is as follows

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o Perez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2014 is as follows EEB (Click to view the operating income for the stores) The squjpment has a zero dsposal oaluse h a senior managpement maptno Mears Loo the angment accourtant at Perez Corporation makes the folowing comment: Perez can increase its profitability by closing down the Rhode Island store. Is Maria Lopez Correct? Read the tequirementa Requirement 1. By closing down the Rhode Island store Perez can reduce overal corporate ovarhead costs by $49.000.Caculate Peezt's operating income Island store Is Maria Lopez's statement about the effect of closing the Rhode Island store comet? Explan Begin by calculating Perez's operating income if it closes the Rhode Island store.(Enter lsses in revenes as a s an operatng enter # it closes the Rhode g loss enter the amount with parenthoses or a minus sign) Loss in Revenues) Savings in Costs Revenues (840000 Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Ublities (electricity, heating) 49000 Corporate overhead 89 Total operating costs 53000 Effect on operating income (loss) Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explan income would increase if it closes down the Rhode island store as shown by the analysis above Lopez is correct that Perez Corporation's operating i Enter any number in the edit felds and then continue to the next question o Perez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2014 is as follows EEB (Click to view the operating income for the stores) The squjpment has a zero dsposal oaluse h a senior managpement maptno Mears Loo the angment accourtant at Perez Corporation makes the folowing comment: Perez can increase its profitability by closing down the Rhode Island store. Is Maria Lopez Correct? Read the tequirementa Requirement 1. By closing down the Rhode Island store Perez can reduce overal corporate ovarhead costs by $49.000.Caculate Peezt's operating income Island store Is Maria Lopez's statement about the effect of closing the Rhode Island store comet? Explan Begin by calculating Perez's operating income if it closes the Rhode Island store.(Enter lsses in revenes as a s an operatng enter # it closes the Rhode g loss enter the amount with parenthoses or a minus sign) Loss in Revenues) Savings in Costs Revenues (840000 Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Ublities (electricity, heating) 49000 Corporate overhead 89 Total operating costs 53000 Effect on operating income (loss) Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explan income would increase if it closes down the Rhode island store as shown by the analysis above Lopez is correct that Perez Corporation's operating i Enter any number in the edit felds and then continue to the next

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