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 $3,840,000 $1,000,000 $1,480,000 $1,360,000 Sales Cost of goods sold 2,122,000 560,000 814,000 748,000 Gross margin 1,718,000 440,000 666,000 612,000 Selling and administrative expenses Selling expenses Administrative expenses 1,084,400 562,220 321,000 162,800 403,200 212,340 360,200 187,080 Total expenses 1,646,620 483,800 615,540 547,280 Net operating income (loss) $ 71,380 $ (43,800) $ 50,460 S 64,720 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 South Store East Store Total Selling expenses $ 323,000 $ 98,000 $117,000 $108,000 78,000 20,400 Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment 229,000 57,600 342,000 39,800 63,000 30,000 86,000 22,200 99,000134,000 109,000 13,000 21,000 10,000 65,000 15,000 13,000 21,000 10,000 13,800 21,000 10,000 Total selling expenses $1,084,400 $321,000 $403,200 $360,200