Chapter 12 Problems Saved Help Save & Exit Submit Check my work 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: Superior Markets, Inc Income Statement For the Quarter Ended September 30 points North Store South Store East Store Total Sales Cost of goods sold Gross margin Selling and administrative expenses: $3,500,000 780,000 $1,400,000 $1,320,000 726,000 594,000 1,925,000 450,000 330,000 749,000 651,000 575,000 eBook Selling expenses Administrative expenses 827,000 236,400 111,000 1,235,000 347,400 273,100 138,600 411,700 340,000 (17,400) 175,100 182,300 317,500 158,400 475,900 408,000 Print Total expenses Net operating income (loss) References 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 that are shown above is as follows: North Store South Store Total Store Selling expenses: Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery $228,000 62,600 56,000 11,700 77,000 88,400 37,000 19,800 170,000 52,500 325,000 18,500 22,500 77,000 21,000 90,000 125,000 110,000 6,500 7,500 5,100 7,500 6,900 7,500 10,500 3,500 3,500 3,500 equipment