b. The lease on the building housing the North Store can be broken with no penalty The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed d The general manager of the North Store would be retained and transferred to another position in the company of the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $13,700 per quarter. The general manager of the North Store would continue to earn her normal salag of $4.700 per quarter. All other managers and employees in the North store would be discharged e. 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 $5.900 per quarter The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete f The company pays employment taxes equal to 15% of their employees salaries One-third of the insurance in the North Store is on the store's fixtures th The "General office salaries and General office other relate to the overall management of Superior Markets, Inc if the North Store were closed, one person to the general office could be discharged because of the decrease in overall workload This person's compensation is $7350 per quarter 24 Required: 1 How much employee salaries will the company avoid fit closes the North Store? 2 How much employment taxes will the company avoid if it closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4. Assuming that the North Store's floor space can't be subleased, would you recommend closing the North Store? 5 Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumptions First assume that it the North Store were closed one fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage disadvantage of closing the North Store? b. The lease on the building housing the North Store can be broken with no penalty The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed d The general manager of the North Store would be retained and transferred to another position in the company of the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $13,700 per quarter. The general manager of the North Store would continue to earn her normal salag of $4.700 per quarter. All other managers and employees in the North store would be discharged e. 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 $5.900 per quarter The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete f The company pays employment taxes equal to 15% of their employees salaries One-third of the insurance in the North Store is on the store's fixtures th The "General office salaries and General office other relate to the overall management of Superior Markets, Inc if the North Store were closed, one person to the general office could be discharged because of the decrease in overall workload This person's compensation is $7350 per quarter 24 Required: 1 How much employee salaries will the company avoid fit closes the North Store? 2 How much employment taxes will the company avoid if it closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4. Assuming that the North Store's floor space can't be subleased, would you recommend closing the North Store? 5 Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumptions First assume that it the North Store were closed one fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage disadvantage of closing the North Store