TI11-4 (similar to) Question Help Orion Corporation ns two stores, one in Medfield and one in Oakland Operating income for each store in 2017as follows: (Click the icon to view the operating income.) The equipment has zero disposal value Read the requirements Requirement1. By closing down the Oakland store, Orion can reduce overall corporate overhead costs by 588,000. Should Orion Coation close down the Oakland store? (Complste all answer boxes. Enter losses in revenues as a negative amount Enter a "0" il the cost is nol relevant. If the nel effect is an operating loss enter the amount with parentheses or a minus sign) (Loss in Revenues) Savings in Costs from Closing Oakland Store Data Table Medfield Store Oakland Store 2.550,000 1,650,000 Revenues Operating costs Operating costs Cast of goods sold Varlable operating costs (labor, utilitles) Lease rent (renewable each year) Depreciation of equipment Allocate Cost of goads sald Variable aperating costs (labor, utities Lease rent (renewable each year) Depreclation of equipment Allocated 1,300,000 170,000 138,000 46,000 84,000 1,738,000 1,280,000 125,000 162,000 40,500 79,000 1,686,500 (36,500) d corporate overhead corporate overhead Total operating costs Total operating costs Effect on operating income (loss) 812,000 $ Operating income (loss) Print Done Requirements 1. By closing down the Oakland store, Orion can reduce overall corporate overhead costs by $88,000. Should Orion Corporation close down the Oakland store? 2. Instead of closing down the Oakland store, Orion Corporation is thinking of opening anather store with revenues and costs identical to the Oakland slore including a cost of $50,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $14,000. Oakland store? Explain. Should Orion Corporatio n open another store like the PrintDone