Question
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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