Please only answer question 3 and 5. Data and questions are in the attached image. 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:

k my work 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 16 points North East South Stora Sales Cost of goods sold $4,188,800 $86e,e $1,640,000 $1,608,800 880,000 720,000 2,255,000 515,800 1,845,000 345,800 860,808 780,000 Selling and administrative expenses: eBook Selling expenses Administrative expenses 839,0 242,400 438,800 117,00 167.4BB 487,980 $ 568,000 $(14,400) $ 292,188 153,680 1.77,80e 359,400 Total expenses Net operating income (loss) Print 290,300 ReferencesThe 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 use a. The breakdown of the selling and administrative expenses that are shown above is as follows: NorthStore SouthStore Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures $263,480 69,600 80,600 $113,200 31,800 176,880 51,500 28e,000 21,5e0 24,300 62,800 12,900 88,800 113, 800 83,800 24,600 24,000 livery salaries Depreciation of delivery Total selling expenses $839,800 $242,480 328, 58 $276,180 Allocated on the basis of sales dollars NorthStore East StoreSouth Administrative expenses Store managers salaries General office salaries Insurance on fixtures and inventory Utilities Employment taxes $86,500 $ 26,5ee $ 35,500 24,500 23,900 18.780 36,900 86,145 65, 355 102,58e 18.800 2,320 455 Total administrative $438,800 $117,800 $167,488 $153,688 Allocated on the basis of sales dollars. b. The lease on the building housing the North Store can be broken with no penaltv 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 $12,000 per quarter. The general manager of the North Store would continue to earn her normal salary of $13,000 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 $5,100 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 person in the general office could be discharged because of the decrease in overall workload. This person's compensation is $6,500 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 subleased, would you recommend closing the North Store? 5 Assume that the North Store's floor snace can't be subleased However let's intraduce three more Check my work giving consideration to closing the store. Ihe company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional Information is avallable for a. The breakdown of the selling and administrative expenses that are shown above is as follows 16 points Tota North Store Store Store Selling expenses Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery $263,480 69,6 80,6 $113,280 31,000 24,8e0 87,800 eBook 176,000 61.588 62,000 12,988 83,000 24, 682 28,0 8, 113,030 21, 580 24,388 Print 12,300 Raferences Total selling expenses 5839,000 $242,400 $320,500 $276,100 Allocated on the basis of sales dollars Tota North Store South Store East Store Administrative expenses: Store managers salaries General office salaries Insurance on fixtures and inventory Utilities Employment taxes General office-other 86,588 26,50 35,50 24,58e 23,900 18,7e0 29,045 25,455 48,800 $438,808 $117,90 $167,40 $153, 58e 61,500 36,808 86,145 65,355 102.508 24,688 14,503 10,888 17,588 21.500 Total administrative 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 fillilng a posltion that would otherwise be filledl by hiring a new employee at a salary of $12,000 per quarter. The general manager of the North Store would continue to carn her normal salary of $13,000 per quarter. All other managers and employees in the North store would be discharged e. The company has one dellvery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person's salary is $5,100 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. q. 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 person in the general office could be discharged because of the decrease in overall workload This person's compensation is 6.500 per quarter. uired: 1. How much employee salaries will the company avoid if it closes the North Store? 2. How much employment taxes will the company avold 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 subleased, 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 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 4Required 5 What is the financial advantage (disadvantage) of closing the North Store? (Enter any "disadvantages" as a n $(45,220) Check my work 2 NorthStore East Store South Selling expenses: Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of dolivery $263,488 69,680 88,680 113,2e0 31.800 24,000 87,000 8.,700 8,100 16 points 176,888 62,808 83,80e 61,500 280,800 21,588 24,300 24,600 88,88 113,800 12,900 5,780 8,100 Total selling expenses $839,000 $242,400 $328,500 $276,180 Print Allocated on the basis of sales dollars. NorthStore East Store South References Administrative expenses: Store managers' salaries General office salaries Insurance on fixtures and inventory Utilities $ 86,500 26,500 35,500 24,5e0 23,9e0 1e,700 29,045 25,455 48,000 61.508 13.000 10,800 27,628 17,588 21,500 24.600 14,500 29,480 22,328 41,000 36,000 65,355 102,500 General office-other* Total administrative expenses $438,000 $117,80 $167,480 $153,68 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 $12,000 per quarter. The general manager of the North Store would continue to earn her normal salary of $13,000 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 $5,100 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 salarles 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 $6,500 per er. 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 subleased, 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 as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store? entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required S Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumption that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong cust Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gr percentage of sales as present sales in the East store. Given these new assumptions, what is the tinancial adv (disadvantage) of closing the North Store? (Enter any "disadvantages" as a negative value.)