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Superior Markets, Inc. operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below Supenor Markets, Inc. Income Statement For the Quarter Ended September 30 North f South Store East Store $3,500,000 $780,000 $1,400,000 $1.320,000 1,925,000450,000749,000726,000 Total relStore Sales Cost of goods sold Gross margin Selling and administrative expenses 1.575,000330,000 651,000 594,000 Selling expenses 827,000 236,400 317.500 273,100 Administrative expenses Total expenses Net operating income (loss) 408,000 111,000 158.400138,600 1,235,000347,400 475,900 411,700 340,000 (17.400) S 175,100 182,300 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked 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. North South StoreStore East Store Total Selling expenses Sales salanes Direct advertising General advertising Store rent Depreciation of store fixtures $228000 $62.600 77,000 88,400 170,00056,000 77 000 37,000 52 50011,700 21.000 19,800 325,000 90,000 125.000 110,000 18,500 22.500 0,500 5,100 7.5007 5007.50D 3,500 6 500 elirvery salaries Depreciation of delivery equipment 3,500 3,500 Total selling expenses 827,000 $236.400 $317,500 $273,100 Allocated on the basis of sales dollars