${?}^{**}$ Allocated on the basis of sales dollars.

${?}^{**}$ Allocated on the basis of sales dollars.

a$.$ The North Store's rental agreement can be broken with no penalty.

b$.$ The North Store's fixtures would be transferred to the other two stores if it were closed.

c$.$ The North Store's general manager would be transferred to another position in the company

if it were closed. She would fill a position that otherwise would have required hiring a new

employee at a salary of $$13,420$ per quarter. The general manager of the North Store would

continue to earn her normal salary of $$14,640$ per quarter. All other managers and

employees in the North Store would be discharged.

d$.$ The company has one delivery crew that serves all three stores. One delivery person could

be discharged if the North Store were closed. This person's salary is $$4,880$ per quarter. The

delivery equipment would be distributed to the other stores. The equipment does not wear

out through use.

e$.$ The company pays employment taxes equal to $15\%$ of their employees' salaries.

f$.$ One$-$third of the North Store's insurance relates to its fixtures.

g$.$ The "General office salaries" and "General office$\_-$other" relate to the overall management of

Superior Markets, Incorporated. If the North Store were closed, one person in the general

office could be discharged because of the decrease in overall workload. This person's

compensation is $$7,320$ per quarter.

Required:

How much employee salaries will the company avoid if it closes the North Store?

How much employment taxes will the company avoid if it closes the North Store?

What is the financial advantage $($disadvantage$)$ of closing the North Store?