Problem 12-26 Close or Retain a Store [LO12-2 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 Septeaber 30 North Store South Store East Store Total $4, 500, 000 2. 475, 000 $900, 000 $1, 800,000 $1,800, 000 Sales Cost of goods sold Gross nargin Selling and administrative expenses: 990, 000 810, 000 550, 000 935, 000 350, 322. 500 173, 400 278,100 163, 600 441, 700 847, 000 246,400 Selling expenses Administrative expenses Total expenses Net operating income (loss) S 720, 000 $ (17, 400) 369, 100 368, 300 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing