please do required 1-5, Thank you!

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 Market, Inc Income Statenent Yor the quarter Ended September 30 North South Last Total Store Store Store Bales $5,000,000 1960,000 $2,000,000 $2,040,000 cost of goods sold 2.250,000 600.000 1.020.000 1,122.000 Cross margin 2,250,000 360,000 972,000 913.000 Selling and administrative expenses Selling expenses 057.000 251.400 325,000 280.600 Ndninistrative expenses 483,000 126.000 180.900 176,100 Total expenses 1,340.000 377.400 505.900 456,700 Net operating con (los) 5910,000 $(17.400) 3466,100 $461,300 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: The breakdown of the selling and administrative expenses that are shown above is as follows: Selling expenses Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total selling expenses "Allocated on the basis of sales dollars. North South East Total Store Store Store $245,000 $ 64,400 $ 75,000 $100,600 185.000 71.000 92.000 22,000 75.000 14.400 30,000 30.600 283.000 01.000 100.000 4.000 26.000 6,600 0.000 11.400 27,000 9.000 9.000 9.000 15.000 5,000 5.000 5.000 $857,000 5251,400 $325,000 $280,600 "Allocated on the basis of sales dollars. North Store South Store Last store Total Antstrative expenses Store manager salaries General ottice salaries. Insurance on tixtures and Lnventory Utilities Employment taxes General office other Total adinistrative expenses $100,000 75,000 45,000 70,000 67,200 125,000 3403,000 31,000 $40,000 $29.000 14.400 30,000 30.600 13,500 19.000 12,500 25,200 19,100 26,420 17.020 22,000 26,500 24.000 50,000 51,000 $126,000 $100,900 $176,100 "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 $13.400 per quarter. The general manager of the North Store would continue to earn her normal salary of $14400 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 $6,000 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 The company pays employment taxes equal to 15% of their employees' salaries 9. One-third of the insurance in the North Store is on the store's fixtures t. The "General office salaries and General office-other relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person's compensation is $7.200 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 company avoid if it closes the North Store? 3. What is the financial advantage (disadvantage of closing the North Store? 4. Assuming that the North Store's floor space can't be subloated, would you recommend closing the North Store? 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 o present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage of closing the North Store