Suarez 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 Suarez Corporation, makes the following comment, "Suarez can increase its profitability by closing down the Rhode Island store." Is Maria Lopez Correct? Read the requirements. Requirement 1. By closing down the Rhode Island store, Suarez can reduce overall corporate overhead costs by $43,000. Calculate Suarez'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 Suarez'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.) (Loss in Revenues) Savings in Costs Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Corporate overhead Total operating costs Effect on operating income (loss) Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. V that Suarez Corporation's operating income would increase if it closes down the Rhode Island store as shown by the analysis Lopez is above. Enter any number in the edit fields and then continue to the next question. ? Read the requirements. Requirement 1. By closing down the Rhode Island store, Suarez can reduce overall corporate overhead costs by $43,000. Calculate Suarez'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 | int. Enter a "0" if the cost is not relevant. If Data Table Connecticut Store Rhode Island Store $ 1,120,000 $ 820,000 670,000 Revenues Operating costs Cost of goods sold Lease rent (renewa Labor costs (paid Depreciation of eq Utilities (electricity, Corporate overhed Total operating Effect on operating ind 720,000 92,000 43,000 Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Allocated corporate overhead Total operating costs Operating income (loss) 26,000 78,000 46,000 18,000 50,000 36,000 39,000 52,000 972,000 898,000 $ 148,000 $ (78,000) Is Maria Lopez's stater Lopez is Print Done bwn by the analysis above. Enter any number in the edit fields and then continue to the next