Check my work 7/ 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 Harkets, Inc Incone Statenent 10 points For the Quarter Ended September 30 East North Store South Store Store 4,500,000 $900,000,800,000 1,800,000 90,000 810,000 Total Sales Cost of goods sold Gross margin Selling and administrative expenses: 2,475,000 550,000 2,025,000 350,000 935,000 865,000 Selling expenses 22,500 278,100 163, 600 495,900 441,700 720,000 $(17,400) $ 369,100 368,300 47,000 246,400 3 458,000 121,000 Adninistrative expensers Total expenses 173,400 Print 1105,00067, 400 Net operating income (loe) The North Store has consistently shown losses over the past two years. For this reason, manage 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: Selling expensess Sales salaries pirect advertising Ceneral advertieing* Store rent Depreciation of store fixtares Delivery salaries $237,000 63,800 71,000 $102,200 27,000 27,000 9,000 9,900 8,500 87,000 27,000 00,000 84,000 117,000 66, 000 13,500 67,500 23,500 25,500 6,100 8,500 7,500 8.500 Depreclation of deivery 13,500 4,500 4,500 4,500 $847,000$246,400 $322,500 $278,100 equi peent Sotal se1ling expenses Allocated on the basis of sales dollars Adninintrative expenses