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X E11-30 (similar to) X i Requirements Nunez Corporation runs two convenience stores, one in Connecticut and one in Operating income for each store in
X E11-30 (similar to) X i Requirements Nunez Corporation runs two convenience stores, one in Connecticut and one in Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) Is Requirement 1. By closing down the Rhode Island store, Nunez can reduce ove Maria Lopez's statement about the effect of closing the Rhode Island store corred Begin by calculating Nunez's operating income if it closes the Rhode Island store the net effect is an operating loss enter the amount with parentheses or a minus 1. By closing down the Rhode Island store, Nunez can reduce overall corporate overhead costs by $50,000. Calculate Nunez'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 Nunez'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 $26,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $5,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. unt. If (Loss in Revenues) Savings in Costs (810,000 Print Done Revenues S 1,110,000 S $ 810,000 Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) 600,000 720,000 92,000 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) 76,000 47,000 26,000 Depreciation of equipment Utilities (electricity, heating) Allocated corporate overhead 44,000 24,000 41,000 51.000 43,000 43,000 972,000 Total operating costs 835,000 (25,000) Enter any number in the edit fields and then click Check Answer. $ 138,000 $ Operating income (loss) ? remaining
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