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 Cast Store Total Sales Cost of goods sold Gross margin Selling and administrative expenses $4,700,000 $940,000 $1,880,000 $1,880,000 1,034,000 846,000 2,585,000 2,115,000 580,000 360,000 971,000 909,000 323,500 176,400 499,900 (11,400) 409,100 398,300 279,100 168,600 447,700 Selling expenses Administrative expenses 468,000 1,319,000 $ 796,000 851,000 248,400 123,000 371,400 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