Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: Connecticut Store Rhode Island Store Revenues $1,070,000 $ 860,000 Operating costs Cost of goods sold 750,000 660,000 Lease rent (renewable each year) Labor costs (paid on an hourly basis) 90,000 42,000 75,000 42,000 Depreciation of equipment 25,000 22,000 Utilities (electricity, heating) 43,000 46,000 40,000 Allocated corporate overhead Total operating costs 50,000 1,000,000 $ 70,000 885,000 Operating income (loss) S (25,000) The equipment has a zero disposal value. In a senior management meeting, Maria Lopez, the management accountant at Sanchez Corporation, makes the following comment, "Sanchez can increase its profitability by closing down the Rhode Island store or by adding another store like it."

Please help me with c. Thanks!

A study has been conducted to determine if Product A should be dropped. Sales of the product total $500,000; variable expenses total $340,000. Fixed expenses charged to the product total $210,000. The company estimates that $60,000 of these fixed expenses are not avoidable even if the product is dropped. If Product A is dropped, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice ($10,000) $10,000 ($50,000) $50,000 Next

Infinity Designs, an interior design company,has experienced a drop in business due toan increase in interest rates and acorresponding slowdown in remodelingprojects. To smulate business, thecompany is considering exhibing at theHome and Garden Expo. The exhibit willcost the company $12,000 for space. At theshow, Infinity Designs will present a slideshow on a PC, pass out brochures that areprinted previously, (the company printedmore than needed), and show its porolio ofpreviousjobs.The companyesmates thatrevenue will increaseby $36,000 over thenext year as a resultof the exhibit. For theprevious year, profitwas as follows:Revenue $201,000Less:Design supplies (variable cost) $15,000Salary of Samantha Spade (owner) 80,000Salary of Kim Bridesdale (full meemployee)55,000Rent 18,000Ulies 6,000Depreciaon of office equipment 3,600Prinng of adversing materials 700Adversing in Middleton Journal 2,500Travel expenses other than depreciaonof autos (variable cost)$3,000Depreciaon of company cars…