SOMEBODY PLEASE ANSWER MY QUESTION I NEVER HAVE ANY LUCK GETTING QUESTIONS ANSWERED 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 Total North Store South Store East Store Sales $ 3,360,000 $ 806,400 $ 1,344,000 $ 1,209,600 Cost of goods sold 1,856,064 451,584 739,200 665,280 Gross margin 1,503,936 354,816 604,800 544,320 Selling and administrative expenses Selling expenses 915,040 259,168 352,800 303,072 Administrative expenses 428,960 118,720 169,008 141,232 Total expenses 1,344,000 377,888 521,808 444,304 Net operating income (loss) $ 159,936 $ (23,072 ) $ 82,992 $ 100,016 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 following additional information is available for your use The breakdown of the selling and administrative expenses that are shown above is as follows Total North Store South Store East Store Selling expenses Sales salaries $ 267,680 $ 78,400 $ 99,680 $ 89,600 Direct advertising 209,440 57,120 80,640 71,680 General advertising 50,400 12,096 20,160 18,144 Store rent 336,000 95,200 134,400 106,400 Depreciation of store fixtures 17,920 5,152 6,720 6,048 Delivery salaries 23,520 7,840 7,840 7,840 Depreciation of delivery equipment 10,080 3,360 3,360 3,360 Total selling expenses $ 915,040 $ 259,168 $ 352,800 $ 303,072 Allocated on the basis of sales dollars Total North Store South Store East Store Administrative expenses Store managers' salaries $ 78,400 $ 23,520 $ 33,600 $ 21,280 General office salaries 56,000 13,440 22,400 20,160 Insurance on fixtures and inventory 28,000 8,400 10,080 9,520 Utilities 118,720 34,720 44,800 39,200 Employment taxes 63,840 18,480 24,528 20,832 General officeother 84,000 20,160 33,600 30,240 Total administrative expenses $ 428,960 $ 118,720 $ 169,008 $ 141,232 Allocated on the basis of sales dollars The lease on the building housing the North Store can be broken with no penalty The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed 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 $12,320 per quarter The general manager of the North Store would continue to earn her normal salary of $13,440 per quarter All other managers and employees in the North store would be discharged The company has one delivery crew that serves all three stores One delivery person could be discharged if the North Store were closed This persons salary is $4,480 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 The company pays employment taxes equal to 15 of their employees' salaries One third of the insurance in the North Store is on the stores fixtures The General office salaries and General officeother relate to the overall management of Superior Markets, Inc If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload This persons compensation is $6,720 per quarter Required 1 How much employee salaries will the company avoid if it closes the North Store 2 How much employment taxes will the company avoid if it closes the North Store 3 What is the financial advantage (disadvantage) of closing the North Store 4 Assuming that the North Store's floor space cant be subleased, would you recommend closing the North Store 5 Assume that the North Store's floor space cant be subleased However, let's introduce three more assumptions First, assume that if the North Store were closed, one fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store

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SOMEBODY PLEASE ANSWER MY QUESTION. I NEVER HAVE ANY LUCK GETTING QUESTIONS ANSWERED! Superior Markets, Inc., operates three stores in a large metropolitan area. A

SOMEBODY PLEASE ANSWER MY QUESTION. I NEVER HAVE ANY LUCK GETTING QUESTIONS ANSWERED!

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
	Total		North Store			South Store		East Store
Sales	$	3,360,000	$	806,400		$	1,344,000	$	1,209,600
Cost of goods sold		1,856,064		451,584			739,200		665,280
Gross margin		1,503,936		354,816			604,800		544,320
Selling and administrative expenses:
Selling expenses		915,040		259,168			352,800		303,072
Administrative expenses		428,960		118,720			169,008		141,232
Total expenses		1,344,000		377,888			521,808		444,304
Net operating income (loss)	$	159,936	$	(23,072	)	$	82,992	$	100,016

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 following additional information is available for your use:

The breakdown of the selling and administrative expenses that are shown above is as follows:

	Total		North Store		South Store		East Store
Selling expenses:
Sales salaries	$	267,680	$	78,400	$	99,680	$	89,600
Direct advertising		209,440		57,120		80,640		71,680
General advertising*		50,400		12,096		20,160		18,144
Store rent		336,000		95,200		134,400		106,400
Depreciation of store fixtures		17,920		5,152		6,720		6,048
Delivery salaries		23,520		7,840		7,840		7,840
Depreciation of delivery equipment		10,080		3,360		3,360		3,360
Total selling expenses	$	915,040	$	259,168	$	352,800	$	303,072

*Allocated on the basis of sales dollars.

	Total		North Store		South Store		East Store
Administrative expenses:
Store managers' salaries	$	78,400	$	23,520	$	33,600	$	21,280
General office salaries*		56,000		13,440		22,400		20,160
Insurance on fixtures and inventory		28,000		8,400		10,080		9,520
Utilities		118,720		34,720		44,800		39,200
Employment taxes		63,840		18,480		24,528		20,832
General officeother*		84,000		20,160		33,600		30,240
Total administrative expenses	$	428,960	$	118,720	$	169,008	$	141,232

*Allocated on the basis of sales dollars.

The lease on the building housing the North Store can be broken with no penalty.
The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.
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 $12,320 per quarter. The general manager of the North Store would continue to earn her normal salary of $13,440 per quarter. All other managers and employees in the North store would be discharged.
The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This persons salary is $4,480 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.
The company pays employment taxes equal to 15% of their employees' salaries.
One-third of the insurance in the North Store is on the stores fixtures.
The General office salaries and General officeother relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This persons compensation is $6,720 per quarter.

Required:

1. How much employee salaries will the company avoid if it closes the North Store?

2. How much employment taxes will the company avoid if it closes the North Store?

3. What is the financial advantage (disadvantage) of closing the North Store?

4. Assuming that the North Store's floor space cant be subleased, would you recommend closing the North Store?

5. Assume that the North Store's floor space cant be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store?