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Question ONE nue Supermarkets Ltd operates three stores in Sydney area. A segmented profit statement for the ve company for the last quarter is given

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Question ONE nue Supermarkets Ltd operates three stores in Sydney area. A segmented profit statement for the ve company for the last quarter is given below: Avenue Supermarkets Ltd Profit statement for the quarter ended 30th June 2017 North Store South StoreEast Store Amount Particulars Total Amount (S) Amount ($) Amount S) 3,000,000 1,657,200 1,342,800 720,000 403.200 316,800 1,200,000 660,000 540,000 1,080,000 594,000 486,000 Cost of goods sold Gross margin rating ex Selling ex Administrative ex Net operatin 817.000 383,000 142,800 231,400 106,000 20,600 315,000 150,900 270,600 126,100 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to close the store. The company has retained you to make a recommendation as to whether the store should be closed or kept open. The following additional information is available for your use. (a) The breakdown of the selling and administrative expenses is as follows: Breakdown of selling ex Particulars Total North Store South Store East Store Amount ($) Amount (S) Amount (S Amount (S Sales salaries Direct advertisin General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery 239,000 187,000 45,000 300,000 16,000 70,000 51,000 10,800 85,000 89,000 72,000 18,000 120,000 6,000 80,000 64,000 16,200 95,000 5,400 21,000 9,000 7,000 3,000 7,000 3,000 7,000 3,000 uipment Total selling expenses 817,000 231,400 315,000 270,600 Allocated on the basis of sales Page 1 of 3

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