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Santiego Corporason nuns two convenience shores, one in Cornecticut and che in Rhode Island. Opecaling income for each store in 2014 is as folowt. Ifif
Santiego Corporason nuns two convenience shores, one in Cornecticut and che in Rhode Island. Opecaling income for each store in 2014 is as folowt. Ifif icick to verw the operating income for the stores.) increase its profitabily by dosing down the Fhode island store. "Is Maria Lopez Correct? Read the reaulrementestore. Is Maria Lopez's statement nbout the effect of closing the Rhode Island store correct? Explain. operating loss enter the armount with parentheses or a minas sign.) is Maria Loper's satement about the effect of ciosing the Hhode laland store correct? Explain. Data table 2. Santiego's operating ir Enter a "0" if the cost is Requirements 1. By closing down the Rhode Island store, Santiego can reduce overall corporate overhead costs by $48,000. Calculate Santiego'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 Santiego'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 $23,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $8,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain
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