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 Store South Store East Store Total Sales Cost of goods sold $4,020,000 S1,060,000 S1,540,000 S1,420,000 2,221,600 593,600 847,000 781,000 Gross margin 1,798,400 466,400 693,000 639,000 Selling and administrative expenses: Selling expenses Administrative expenses 1,141,700 598,160 340,200 174,380 422,100 224,520 379,400 199,260 Total expenses 1,739,860 514,580 646,620 578,660 Net operating income (loss) S 58,540 S (48,180) S 46,380 S 60,340 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 a. The breakdown of the selling and administrative expenses is as follows: North Store Selling expenses: Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment S 341,000 S104,000 S123,000 S114,000 81,000 21,300 351,000 102,000 137,000 2,000 15,600 89,000 238,000 60,300 68,000 15,900 23, 21 44,900 72,000 34,500 14,800 24,000 11,500 14,500 24,000 11,500 11,500 Total selling expenses S1,141,700 S340,200 S422,100 S379,400