Suarez Corporation runs two convenience stores, one in Connecticut and one in Rhode wand Operating income for each teren 2014 is as follows: Click to view the operating income for the stores) The woment has a zero dapoual value. In a senior management meeting, Maria Loper, the management accountant at Suarez Corporation, makes the following comment, Suarez can increate a protestay by doing down the red and Read the requirements Requirement 1. By doing down the Rhode Island store, Suarez can reduce overal corporate overhead costs by S87.000. Calculateurs operating roome il coses the Rhode Island store. Mata Loperament about the effect of closing the Rhode Island store correct? Explain Begin by calculating Suarez's operating income T2 comes the Periode and store. Venter les revenues as a negative amount. Enter a 10 l the cont is not relevare the ret afect is an operating low enter the amount with parentheses era (Loss in Revenues) Data Table Savings in Costs Revenues Operating costs Connecticut Store Rhode Island Store Cost of goods sold Revenue 5 1,150,000 $ 810.000 Lenserentenewable each year) Operating costs Laborcous (paid on an hourly basis) Cost of goods sold 700.000 Depreciation of equipment Losseront rebach year) 000 (electricity, heating Labor costs (padon an hourly basis 46.000 Corporate overhead Depreciation of equipment 20.000 41,000 Total operating costs Uties (electroly, heating 65,000 35.000 Allocated corporate overhead Efect on operating income foss) Total operating costs 200.000 Enter any number in the edities and then continue to the next question Operating income 008) 70,000 22.000 947 000 Suarez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island Operating income for each store in 2014 is as follows: 22. (Click to view the operating income for the stores) The equipment has a zero disposal value. In a senior management meeting, Maria Loper, the store.is Maria Lopez Correct? Data Table Read the requirements Uyruy peroy WWW WITH THE minus sign.) Connecticut Store Rhode Island Store (Loss In Revenues) Revenues $ 1,150,000 $ 810.000 Savings in Costs Operating costs Revenues Cost of goods sold 700,000 670,000 Operating costs Lease rent (renewable each year) 94.000 70.000 Cost of goods sold Labor costs (paid on an hourly basis) 46,000 42.000 Lease rent (renewable each year) Depreciation of equipment 20,000 23.000 Labor costs (paid on an hourly basis) Utilities (electricity, heating) 41,000 46.000 Depreciation of equipment 46,000 35,000 Alocated corporate overhead Ulici (electricity, heating) 947,000 886,000 Total operating costs Corporate overhead 203,000 $ (75.000) Operating income doss) Total operating costs Effect on operating income (oss) Print Done $ Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain Lopez is that Suarez Corporation's operating income would increase it clones down the Rhode Island store as shown by the analysis above Enter any number in the edit fields and then continue to the next