I need an answer for the two questions in the blank

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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: Superior Markets, Inc Income Statement For the Quarter Ended September 30 South Store North Store East Store $3,600,000 800,000 $1,440,000 $1,360,000 748,000 612,000 Total Sales Cost of goods sold Gross margin Sel l ing and administrat ive expenses 762,000 678,000 1,980,000 470,000 1,620,000 330,000 273,600 141,100 414,700 $378,000 (19,400) 200,100 $ 197,300 318,000 159,900 477,900 Sel l ing expenses Administrat ive expenses 829,000 237,400 413,000 112,000 349,400 Total expenses Net operat ing income (loss) 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 East Store Total Sel l ing expenses $221,400 61,000 74,600 85,800 Sales salaries Direct advert ising General advertising Store rent Depreciat ion of store fixtures Del ivery salaries Depreciat ion of del ivery 171,000 54,000 330,000 19,000 22,800 10,800 57,000 12,000 T8,000 21,600 91,000 126,000 13,000 6,600 7,600 3,600 36,000 20,400 5,200 7,600 3,600 7,200 7,600 3,600 $829,000 $237,400 $318,000 $273,600 equipment Total sell ing expenses Allocated on the basis of sales dollars North Store South Store East Store Total Administrat ive expenses $79,000 24,000 33,000 22,000 20,400 9,700 34,630 20,370 34,000 $413,000 $112,000 $159,900 $141,100 Store managers' salaries General off ice salaries Insurance on fixtures and inventory Uti lities Emp loyment taxes General off ice-other* 54,000 31,000 102,420 56,580 90,000 21,600 12,000 36, 780 20,520 36,000 12,000 9,300 31,010 15,690 20,000 Total administrat ive expenses Allocated on the basis of sales dollars b. The lease on the building housing the North Store can be broken with no penalty 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 retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $11,000 per quarter. The general manager of the North Store would continue to earn her normal salary of $12,000 per quarter. All other managers and employees in the North store would be discharged e. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person's salary is $4,600 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete f. The company pays employment taxes equal to 15% of their employees' salaries g. One-third of the insurance in the North Store is on the store's fixtures h. The "General office salaries" and "General office-other" relate to the overall management of Superior Markets, Inc. If the North Store were closed, one pers n in the general office could be discharged because of the decrease in overall workload. This persns compensation is $6,000 per quarter. What is the financial advantage (disadvantage) of closing the North Store? (Enter any "disadvantages" as a negative value.) Financial advantage (disadvantage) 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 closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Secnd, assume that the East Store has enough 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 margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store? (Enter any "disadvantages" as a negative value.) Show less Financial advantage (disadvantage