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Can Someone help me with this problem? thank you Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income
Can Someone help me with this problem? thank you
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 Income Statement For the Quarter Ended September 30 North Store South East Store Sales Cost of goods sold $4,700,000 $940,000 $1,880,000 $1,880,000 585,000 580,000971,000 1,034,000 Gross margin 2,115,000 360,000 909,000 846,000 Selling and administrative expenses: Selling expenses Administrative expenses 851,000248,400 323,500 279,100 468,000 123,000 176,400 168600 1,319,000 371,400 499,900 447,700 $ 796,000 (11,400) 409,100 398,300 Total expenses Net operating income (loss) The North Store has consistently shown losses over the past two years. For this reason giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store shouid be closed or kept open. The following additional information is available for your use management is a. The breakdown of the selling and administrative expenses is as follows North TotalStore Store South East Store Selling expenses: Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment $252,800 60,600 80,200 $ 112,000 182,000 68,00089,000 25,000 70,50014,10028,200 28,200 281,000 86,000 105,000 90,000 7,700 10,500 26,100 8,700 8,700 14,100 4,700 4,700 4,700 Total selling expenses 5 851,000 S248,400 $323,500 $279,100 Allocated on the basis of sales dollars North Store South Store East Store Total Administrative expenses $ 95,500 29,500 $ 38,500 27,500 70,500 14,200 28,200 28,100 11.900 27,655 16,950 23,340 26,445 117,500 23,500 47,000 47.000 Store management salaries General office salaries Insurance on fixtures and inventory Utilities 42,000 12,600 17,500 75,765 26,250 21,860 66,735 Employment taxes General office-other Total administrative expenses $468,000 123,000 $176,400 168.600Step by Step Solution
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