Please fill in numbers $1-5$

Superior Markets, Incorporated, 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, Incorporated Income Statement For the Quarter Ended September 30 818,400 736,560 669 , 602, 39 , 335,544 474 , 187 , 116 156,364 577 , 716 491, 908 $ 91,884 177 , 072 $ 86,800 $ 99,200 231,880 372, 105 , 148 , 117 , $ 86,800 $ 26,040 $ 37,200 $ 23,560 131, 43, 131, 187 , 116 156,364 Total North Store South Store Sa tes Cost of goods sold Gross margin Setting and administrative expenses: Setting expenses Administrative expenses Total expenses Net operating income (loss) 2, 054 , 928 1, 665,072 1, 013, 1, 488, $ 892,800 499 , 968 392,832 286 , 936 131, 418,376 $ (25,544) East Store $ lie, 732 The North Store has consistently shown losses over the past two years, so management is considering closing this store. a. A detailed breakdown of the selling and administrative expenses shown above is as follows: Setting expenses: Sates salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total setting expenses *Allocated on the basis of sales dollars. Administrative expenses: Store managers' salaries General office salaries* Insurance on fixtures and inventory Utilities Employment taxes General off Total administrative expenses *Allocated on the basis of sales dollars. Tota $ 296,360 55,800 19,840 26 , 040 11,160 Tota 62, 31, 93 , $ 474,920 North $ 286,936 Store South 63,240 13 , 392 5, 704 8,680 3,720 North Store 14,880 9,300 38 440 22,320 $ 11,360 $ 39,6 South Store 24 , 11,160 49, 27 , 156 37 , 200 Store 89 , 280 22 , 320 8,680 3,720 East Store 79,360 2 , 088 6,696 8,680 3,720 $ 335,544 East Store 22,320 1,540 23 , 33,480 b. The North Store's rental agreement can be broken with no penalty. c. The North Store's fixtures would be transferred to the other two stores if it were closed. d. The North Store's general manager would be transferred to another position in the company if it were closed. She would fill a position that otherwise would have required hiring a new employee at a salary of $13,640 per quarter. The general manager of the North Store would continue to earn her normal salary of $14,880 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 $4,960 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use. f. The company pays employment taxes equal to 15% of their employees' salaries. g. One-third of the North Store's insurance relates to its fixtures. h. The "General office salaries" and "General officeother" relate to the overall management of Superior Markets, Incorporated. 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 $7,440 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 the North Store's floor space can't be subleased, would you recommend closing the North Store? 5. Assume the North Store's floor space can't be subleased. However, let's introduce three more assumptions. First, 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, the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 How much employee salaries will the company avoid if it closes the North Store? Required 2