rving Corporation runs two stores, one in Medfield and one in Oakland. Operating income for each store in 2017 is as follows: 11-4 Oakland Store Medfield Store Revenues $1,700,000 $2,100,000 Operating costs Cost of goods sold Variable operating costs (labor, utilities) Lease rent (renewable each year) Depreciation of equipment Allocated corporate overhead 1,310,000 170,000 155,000 40,000 75,000 1,750,000 1,500,000 180,000 160,000 50,000 90,000 1,980,000 S 120,000 Total operating costs S (50,000) Operating income (loss) The equipment has zero disposal value. By closing down the Oakland store, Irving can reduce overall corporate overhead costs by $85,000. Should Irving Corporation close down the Oakland store? n the Oakland store, Irving can reduce overall corporate overhead 1. 2. Instead of closing down the Oakland store, Irving Corporation is thinking of open- ing another store with revenues and costs identical to the Oakland store (including a cost of $40,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $10,000. Should Irving Corporation open another store like the Oakland store? Explain