In Statement For the Quarter Ended September 30 North South Total Store $3. 50 0 .000 $1.440. Costos sold 2004, 262.ece Gossarin Selling and ministrative $1,362, Bee 318, 413, 112.se Adelaistration Total en turting c ) S 38.00 $(19.40 $200,105 197.3 The North Sears Constety shownlosses over the past years. For this reasonagements concerto con there. The c h essed you to recomendons to whether the store should be closed or let open. The following decor a tionis velbefor your use The breakdown of the sing and di v erses that are shown above Total Ston Stone Store $221.60 Sales salaris Direct advertising Geral advertising Stone rent Depreciation of stone Fixtures Delivery salaries Depreciation of delivery $6.00 $74.68 57,880 78.cee 12. 0 21.0 93,880 125.ee 5 .2005.68 7.00 7.500 3,5 3,68 Se, 26,888 28.4 133, 54.00 338.se 19. 0 22.00 s.se 7.58 3,5 Total selling 5829,00 237,00 28.00 $273, 50 Alcated on the basis of sales colles North Store South Store East Store Total Administrative expenses Storage salaries Gamal office salaries Insurance on fixtures and $29, 54.00 $24,00 12.000 31, 102,420 56,58 $33.cee $22.98 21.60 28,428 12,cee 9,788 35,782 34,63a 20,52e 20,378 36, e3428 $150,900 $141, 188 2,3 31,212 15, 23, 2 $112,000 Employment Takes General office other Total adinistrative -200 5413,000 Allocated on the basis of sales colles The lense on the building housing the North Store can be broken with no penat. The fixtures being used in the North Store would be transferred to the other two stores the North Store were closed The general manager of the North Store would be retained and transferred to another position in the company of the North Store were closed. She would be in a position that would otherwise be filed by hiring a new employee sto ry of $1.000 per quarter. The general manager of the North Store would continue to earn her normal salary of $12.000 per quarter All other Mangers and employees in the North store would be clecharges The company has one delvery crew that serves all three stores. One dellvery person could be decharges of the North Store were closed. This person's salary is $4.500 per quarter. The delivery eculement would be stroutes to the other stores. The ecument does not wear out through use, but does eventually become esclete The company Daya l oyment taxes qual to 15% of their employees salaries One-third of the insurance in the North Stores on the store's Fixtures The "General e les and General office-other ste to the overall management of Suce M e Not Store were close one person in the general office could be charged because of the decrease in overal wood. This person's compensation is $6.000 per quarter Required: 1. How much employee wires will the company evoldftcloses the North Store 2. How much moments will the company avoid fecioses the North Store 3. What is the finance age v oel of closing the North Store 4 Asing that the North Shores for space can be see, would you recommend closing the North Care 5. Are the the North Store's for at be sed. Howeve r oduce three more t ons to meet the North Store were closed and those woorder to the East Store, due to strong terletto Super W . Second, that the Enteres o .hocy to handle the increases is the would age from closing the North Store. Th e the the increase in the East Store wodyed the same r egina percentage of een presentes the streven these new what's the on e of cosing the North Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 Required closes the North Store? How much employee salaries will the company avoid Employees Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 How much employment taxes will the company avoid if it closes the North Store? Employment taxes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What is the financial advantage (disadvantage) of closing the North Store? (Enter any "disadvantages" as a negative value.) Financial advantage (disadvantage) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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. Second, 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)