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 company for the last quarter is given below Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South East Total Store StoreStore $4,500,000 $900,800 $1,800,000 $1,800,800 2,475,889 550,809 935,088 999,800 Sales Cost of goods sold Gross margin Selling and adninistrative expenses: 2,025,800 350,800 865,800 810,800 Selling expenses 847,800 246,4 322,580 278,1 Administrative expenses Total expenses Net operating income (loss) 458,800 121,80e 173,400 163,600 1,305,800 367,40 495,989441,78 $720,800 $ (17,40e) 369,100 $368,39 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to