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lor the contyany for the last quarter is ghen belowe The North Slofe thas consistently shown lostes over the pist two years For this teason,

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lor the contyany for the last quarter is ghen belowe The North Slofe thas consistently shown lostes over the pist two years For this teason, managernert is ghing corsideration to ciosing the store. The corfipany fas asked you to make a recommendation as to whether the store should bet cloced or kept oper. The following additional intcermotion is crailable for your use: 6. The breatholown of the selling and administrathe expensos that are shown above is as fallows: b. The kease on the bulding hovsing the North Store cain be bickim with no peralty. c. The fichers being used in the Noith Store would be wansleired to the other two sieres if the Narri store were closed. were closed. She would be fining a positian that would otherwise be filed by hiing a new emiployee it as sality of 514 . 300 per managers and employees in the North store would be discharged. 0. The compary has one delivery crew that seryes all thisee shorm. One delvery person could be oschacged if the Nouth stare were. closed This gerson's Yalary b $5,200 per quartes Tre delivery equpment would be distibuted to the other stotes. The equipinent. does not wear out throbgh use, but does eventually becorthe obsolelte. F.The compary pays ertiployment tawes equal to 15k of thel employees's walaties. g. Orwithild of the Insurarce in the Noitt Store is on the stores fodures. North 5 the were closed, one person in the general affice cosid be discharned becanse of the dectease in owerat woinioval. this person's comperwation is 57800 per quartect 1. The compary poys employment taxes equal to 55% of their employees' salaries. 9. One third of the insurance hn the North 5 tore is on the store's fixtures. h. Ihe "General office salaries" and "General office -other" relate to the overall management of Superlor Markets. Incorporated. If the North Store were closed, one person in the generaf office could be discharged because of the decrease in overall workfood. This person's compensation is $7,800 per quater, Required: 1. How much employee salarles will the company woid if it closes the North Store? 2. How much employment taxes will the compary avoid if it closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4. Assurting that the North Stores flicor space can't be subleased, would you recommend closing the North Store? 5. Assume that the North Store's floor space cant be subleased. However, let's introduce three more assumptions. First. assume that if the North Store were ciosed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Second, assime that the East Store has enough capocity to handle the increased sales that would artse from clecing the Nocth Store. Third, assume that the increased sales in the East Store would yleld the same gross margin as a percentage of sales as present sairs in the East store. Gwen these new assumptions, what is the financial advantage (disadkantage) of closine the North Complete this question by entering your answers in the tabs below. Hinw musch employen sataries will the company avold if it doses the North Store

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