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Requirement 1. By closing down the Oakland store, Hall can reduce overall corporate overhead costs by $ 83 comma 000 . Should Hall Corporation close

Requirement 1. By closing down the Oakland store,

Hall

can reduce overall corporate overhead costs by

$ 83 comma 000

.

Should

Hall

Corporation close down the Oakland store? (Complete all answer boxes. Enter losses in revenues as a negative amount. Enter a "0" if the cost is not relevant. If the net effect is an operating loss enter the amount with parentheses or a minus sign.)

(Loss in Revenues)

Savings in Costs

from Closing

Oakland Store

Revenues

Operating costs

Cost of goods sold

Variable operating costs (labor, utilities)

Lease rent (renewable each year)

Depreciation of equipment

Allocated corporate overhead

Total operating costs

Effect on operating income (loss)

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