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Please complete 2 parts of the question and label each part starting with the blank boxes Null Corporation runs two stores, one in Medfield and
Please complete 2 parts of the question and label each part starting with the blank boxes
Null Corporation runs two stores, one in Medfield and one in Oakland. Operating income for each store in 2017 is as follows: BE(Click the icon to view the operating income.) The equipment has zero disposal value. Read the requirements Oakland Store Revenues Operating costs 1,230,000 Cost of goods sold 150,000 Variable operating costs (labor, utilities) 161,000 Lease rent (renewable each year) 0 Depreciation of equipment Allocated corporate overhead Total operating costs Effect on operating income (loss) Enter any number in the edit fields and then click Check Answer. as followS Requirements By closing down the Oakland store, Null can reduce overall corporate overhead costs by $90,000. Should Null Corporation close down the Oakland 1. store? Instead of closing down the Oakland store, Null Corporation is thinking of opening another store with revenues and costs identical to the Oakland store (including a cost of $44,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $12,000. Should Null Corporation open another store like the Oakland store? Explain. 2. Done Print I then click Check Step by Step Solution
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