Complete this question by entering your answers in the tabs below, How inuch employed salarles will the company avoid if it closes the North Store? Complete this question by entering your answers in the tabs below. Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were dosed, one-fourth of its sales wouid transfer to the Fast Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enocigh 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 marpin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financlal advantage (disadvantage) of closing the North Store? (Enter any "disadvantages" as a negative value.) Complete this question by entering your answers in the tabs below. Assuming that the North Store's Hoor space con't be subleased, would vou recommend closing the North Store? a. The breakdown of the selling and administrative expenses that are shown above is as follows: Complete this question by enterind your answers in the tabs below. What is the financial advantage (disadvantage) of cosing the North store? (Enter any "disadvantagen" as a negative value) Complete this question by entering your answers in the tabs below. How much employment taxes will the company avold if it closes the Noth Store? Supcrior Markets, incorporated, operates three stores in a large metropolitan acea. A segmented absorption costing income statement for the company for the last quarter is given below: The North Store has conkilently shown losses over the past fwo years. For this reason, management is giving consideration to ciosing the store The company tas asked you to make a recommendation as to whether the store shouid be closed of kept oper. The following additional information is avalable for your use: b. The lease on the bullding housing the North Store can be broken with no penaliy. c. 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 relained and transferred to another position in the company if the North Store were elosed. She would be filling o position that would otherwise be filled by hiring a new ernployee at a salary of $12,760 per quarter. The general manager of the North Store would continue to earn her normal salary of $13.920 per quarter, All other manogers and employees in the North store would be discharged. e. The company has one delivery crew that serves all three stores. One dellvery person coutd be discharged if the North Store were closed. This person's salary is $4,640 per quarter. The delvery equipment would be distributed to the other stores. The equipment does not woar out through use, but does eventually become obsolete. 1. The compary pays employment taxes equal to 15% of thelr employees' salaries. 9 One third of the Irstirance in the North Storels on the stores fixtures: h. The "General office sataries" and "Generat office-other" relate to the overall monogement of Superior Markets, Incorporated. If the North Store were closed, one person in the general office could be discharged because of the decrease in overali workload. This person's compensation is $6,960 per quarter. Required: 1. How much employee salaries will the company avoid if it closes the North Store? 2. How much employment taxes will the compary avoid if il closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4 Assuming that the North Stores floor space can't be subleased, would you recommend closing the North Store? 5 Assume that the North Stores floor space can't be subleased. Howevor, lets introduce threse nsore assumptions. Fiest, assume that it the North Store were closed, one-founth of its sales would transfer to the East Store, clue to strong cisstomer loyalty to Superior Markets. Second, assume that the Fast Store has enough capacity to handle theancreased sales that would arise from closing the North Store. Third, assurne that the increased sales in the East Store would yietd the same gross margin as a percentage of sates as present sales in the East store. Given these new assumplions, what is the financial advantage (disadvontago) of closing the North Store