Stine Corporation runs two stores, one in Medfield and one in Oakland. Operating income for each store in 2017 is as follows: (Click the icon to view the operating income.) Data table Requirements Medfield Store Oakland Store $ 2,500,000 $ 1,600,000 Revenues 1. By closing down the Oakland store, Stine can reduce overall corporate overhead costs by $86,000. Should Stine Corporation close down the Oakland store? 2. Instead of closing down the Oakland store, Stine Corporation is thinking of opening another store with revenues and costs identical to the Oakland store (including a cost of $48,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $9,000. Should Stine Corporation open another store like the Oakland store? Explain. 1,200,000 1,300,000 135,000 Operating costs Cost of goods sold Variable operating costs (labor, utilities) Lease rent (renewable each year) Depreciation of equipment Allocated corporate overhead 160,000 156,000 140,000 48,000 85,000 44,500 81,000 1,633,000 1,716,500 Print Total operating costs Done $ 867,000 $ (116,500) Operating income (loss) Stine Corporation runs two stores, one in Medfield and one in Oakland. Operating income for each store in 2017 is as follows: Click the icon to view the operating income.) The equipment has zero disposal value. Read the requirements. Requirement 1. By closing down the Oakland store, Stine can reduce overall corporate overhead costs by $86,000. Should Stine Corporation close down the Oakland store? 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.) (Loss in Revenues) Savings in Costs from Closing Oakland Store Revenues Operating costs Cost of goods sold Variable operating costs (labor, utilities) Lease rent (renewable each year) Depreciation of equipment Allocated corporate overhead Total operating costs Effect on operating income (loss) Should Stine close down the Oakland store? The loss of revenues is The cost savings is Which cost will not be saved because it is a past cost? Requirement 2. Instead of closing down the Oakland store, Stine Corporation is thinking of opening another store with revenues and costs identical to the Oakland store (including a cost of $48,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $9,000. Should Stine Corporation open another store like the Oakland store? Explain. Begin by calculating Stine's operating income if it keeps the Oakland store open and opens another store with revenues and costs identical to the Oakland store. (If the net effect is an operating loss, enter the amount with parentheses or a minus sign.) Incremental Revenues (Incremental Costs) of Opening New Store Like Oakland Store Revenues Operating costs Cost of goods sold Variable operating costs (labor, utilities) Lease rent (renewable each year) Depreciation of equipment Allocated corporate overhead Total operating costs Effect on operating income (loss) Stine Corporation open another store like the Oakland store because it yields a(n) in operating income