Avenue Supermarkets Ltd Profit statement for the quarter ended 30th June 2017 North Store South Store East Store Amount (S) Amount (S Amount (S) Amount (S) Particulars Total 720,000 403,200 316,800 1,200,000 660,000 540,000 1,080,000 594,000 486,000 Sales Cost of goods sold Gross Operating expenses Selling expenses Administrative expenses Net operating profit/loss 3,000,000 1,657,200 1,342,800 in 817,000 383,000 142,800 231,400 106,000 (20,600) 315,000 150,900 74,100 270,600 126,100 89,300 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to close the store. The company has retained you to make a recommendation as to whether the store should be closed or kept open. The following additional information is available for your use. (a) The breakdown of the selling and administrative expenses is as follows: Breakdown of selling expenses Total Amount (S) North Store South Store East Store Amount (S) Amount (S) Amount (S Particulars 239,000 187,000 45,000 300,000 16,000 70,000 51,000 10,800 85,000 4,600 89,000 72,000 18,000 120,000 6,000 80,000 64,000 16,200 95,000 5,400 Sal irect advertisin General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total selling expenses 21,000 9,000 7,000 3,000 7,000 3,000 7,000 3,000 817,000 231,400 315,000 270,600 Allocated on the basis of sales