Problem 12-26 Close or Retain a Store [L012-2] Superior Markets, Inc, operates three stores in a large metropolitan area. A segmented absorption costing income statement for the t quarter is given below. For the Quarter Ended September 30 North South Total Store Cost of goods sold Gross margin Selling and administrative expenses: $4,600,e8e $920,eee $1,840,000 $1,840,00e 953,eee 1,012,ee0 828,eee 2,530,eee 565,880 2,870,080 355,800 Selling expenses Administrative expenses 463,ee0 1,312 849,000 247,480 122,000 369,400 323,ee0 174,90e 166,100 444,780 Total expenses Net operating income (loss) s 758,e00 $(14,48e) 389,1ee 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 additional information is available for your use: a. The breakdown of the selling and administrative expenses that are shown above is as follows