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 ncome Statemen For the Quarter Ended September 30 South East Store Store Sales $3,300,000 $760,000 $1,320,000 $1,220,000 Cost of goods sold 1.815.000 433.000 000 671.000 Gross margin 485.000 609,000 549,000 Selling and administrative expenses: 316,500 272,100 Selling expenses 823.000 234.400 398,000 09.000 Administrative expenses 55,400 33,60 Total expenses 221.000 343.400 471.900 405.700 264,000 (16,400 37,100 43,300 Net operating income (loss) The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to dosing 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 South East Total Store Store Selling expenses $227,200 S 65,500 81,800 79,900 Sales salaries Direct advertising 82,000 54,000 75,000 53,000 49,500 400 19,800 General advertising 18,300 Store rent 315,000 88,000 123,000 04,000 Depreciation of store fixtures 17.500 4.900 6.300 6.300 Delivery salaries 21,900 7,300 7,300 7,300 Depreciation of delivery equipment 9.900 3,300 3.300 3.300 $823.000 $234,400 $316,500 $272.100 Total selling expenses