Required: i. By closing down the Noida store, Divya can reduce overall corporate overhead costs by INR 4,40,000. Calculate Divya's operating income if she closes the Noida store. Is Varun's statement about the effect of closing the Noida store correct? Explain.

ii. Calculate Divya's operating income if she keeps the Noida store open and opens another store with revenues and costs identical to the Noida store (including a cost of INR 2,20,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by INR 40,000. Is Varun's statement about the effect of adding another store like the Noida store correct? Explain.