PROBLEM 10-26A Close or Retain a Store [LO10-2] 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 North Store South Store East Store Total 1,657,200 403,200 316,800 660,000 540,000 594,000 486,000 1,342,800 Selling and administrative expenses 270,600 126,100 396,700 $ 142,800 $(20,600) $ 74,100 $89,300 817,000 231,400 106,000 1,200,000 337,400 315,000 150,900 465,900 383,000 The North Store has consistently shown losses over the past two years. For this reason, management is giv- ing 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