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 Gross margin Selling and administrative expenses: $4,600,000 $920,000 1,840,000 $1, 840,000 1,012,000 828,000 2,530,000 2,070,000 565,000 355, 000 953,000 887,000 323,000 174,900 497,900 (14,400) 389,100 383,300 278,600 166,100 444,700 Selling expenses Administrative expenses 463,000 1,312,000 $ 758,000 849,000 247,400 122,000 369,400 Total expenses Net operating income (loss) 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 that are shown above is as follows