Selling expenses: Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total selling expenses *Allocated on the basis of sales dollars. Total North Store South Store $ 286,800 224,400 54,000 $ 84,000 61,200 $ 106,800 86,400 East Store $ 96,000 76,800 12,960 21,600 19,440 360,000 102,000 144,000 114,000 19,200 5,520 7,200 6,480 25,200 8,400 8,400 8,400 10,800 3,600 3,600 3,600 $ 980,400 $ 277,680 $ 378,000 $ 324,720 Administrative expenses: Store managers' salaries General office salaries* Insurance on fixtures and inventory Utilities Employment taxes $ 84,000 60,000 30,000 127,200 General office-other* Total administrative expenses *Allocated on the basis of sales dollars. Total North Store South Store East Store $ 25,200 14,400 $ 36,000 24,000 $ 22,800 21,600 9,000 10,800 10,200 37,200 48,000 42,000 68,400 19,800 26,280 22,320 90,000 21,600 36,000 32,400 $ 459,600 $ 127,200 $ 181,080 $ 151,320 b. The lease on the building housing the North Store can be broken with no penalty. c. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed. d. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $13,200 per quarter. The general manager of the North Store would continue to earn her normal salary of $14,400 per quarter. All other managers and employees in the North store would be discharged. e. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person's salary is $4,800 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete. f. The company pays employment taxes equal to 15% of their employees' salaries. g. One-third of the insurance in the North Store is on the store's fixtures. h. The "General office salaries" and "General office-other" relate to the overall management of Superior Markets, Incorporated. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person's compensation is $7,200 per quarter.