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 Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total expenses Net operating income (loss) North South East Total Store Store Store $4,900,000 $980,000 $1,960,000 $1,960,000 2,695,000 620,000 997,000 2,205,000 360,000 963,000 1,078,000 882,000 855,000 250,400 324,500 280,100 478,000 125,000 179,400 173,600 1,333,000 375,400 503,900 453,700 $428,300 $ 872,000 $(15,400) $459,100 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: Total North Store South Store East Store Selling expenses: Sales salaries Direct advertising $252,600 184,000 $ 65,400 70,000 $ 75,400 $111,800 91,000 23,000 General advertising* 73,500 14,700 29,400 29,400 Store rent 278,000 80,000 107,000 91,000. Depreciation of store fixtures 25,500 6,500 7,900 11,100 Delivery salaries 26,700 8,900 8,900 8,900 Depreciation of delivery equipment 14,700 4,900 4,900 4,900