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Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2014 is as follows: (Click

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Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2014 is as follows: (Click to view the operating income for the stores.) The equipment has a zero disposal value. In a senior management meeting. Maria Lopez, the management accountant at Sanchez Corporat makes the following comment, "Sanchez can increase its profitability by closing down the Rhode Island store." Is Maria Lopez Correct? Read the reguirements Sanchez'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 Sanchez's operating income if it closes the Rhode Island store. (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.) Data table Requirements 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $40,000. Calculate Sanchez'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 Sanchez's operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to th Rhode Island store (including a cost of $21,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $6,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. Inne> is that Sanche> Conmeratinn's nneratinn income wnuld increage if it clnces

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