Requirement 1. By closing down the Rhode Island store, Nunez can reduce overall corporate overhead costs by $39,000. Calculate Nunez'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. Begin by calculating Nunez's operating income if it closes the Rhode Island store. (Complete all input fields. 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.) 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) Corporate overhead Total operating costs Effect on operating income (loss) (Loss in Revenues) Savings in Costs Data table Connecticut Rhode Island Store Store $ 1,040,000 $ 800,000 Revenues Operating costs Cost of goods sold 725,000 620,000 Lease rent (renewable each year) 95,000 77,000 Labor costs (paid on an hourly basis) 50,000 41,000 Depreciation of equipment 27,000 22,000 Utilities (electricity, heating) 38,000 52,000 46,000 36,000 Allocated corporate overhead 981,000 848,000 Total operating costs $ 59,000 $ (48,000) Operating income (loss) Requirements 1. By closing down the Rhode Island store, Nunez can reduce overall corporate overhead costs by $39,000. Calculate Nunez'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 Nunez'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 $22,000 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.