Santiego Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) effect of closing the Rhode Island store correct? Explain. Begin by calculating Santiego's operating income if it closes the Rhode island store. (Complete all answer boxes. Enter lof the amount with parentheses or a minus sign.) The equipment has a zero disposal value. In a senior management meeting, Maria Lopez, the management accountant at Santlego Corporation, makes the following comment, "Santiego can increase its profitability by closing down the Rhode Island store or by adding another store like it." Requirements 1. By closing down the Rhode Island store, Santiego can reduce overall corporate overhead costs by $44,000. 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 $21,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Santiego Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) effect of closing the Rhode Island store correct? Explain. Begin by calculating Santiego's operating income if it closes the Rhode island store. (Complete all answer boxes. Enter lof the amount with parentheses or a minus sign.) The equipment has a zero disposal value. In a senior management meeting, Maria Lopez, the management accountant at Santlego Corporation, makes the following comment, "Santiego can increase its profitability by closing down the Rhode Island store or by adding another store like it." Requirements 1. By closing down the Rhode Island store, Santiego can reduce overall corporate overhead costs by $44,000. 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 $21,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain
