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 Sales Total $4,300,000 North Store South East Store Store $860,000 $1,720,000 $1,720,000 Cost of goods sold 2,365,000 510,000 909,000 946,000 Gross margin 1,935,000 350,000 811,000 774,000 Selling and administrative expenses: Selling expenses Administrative expenses Total expenses 843,000 244,400 321,500 277,100 448,000 119,000 170,400 158,600 1,291,000 363,400 491,900 435,700 Net operating income (loss) 644,000 $ (13,400) $319,100 $330,300 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: