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
	Total			North Store			South Store			East Store
Sales	$	3,720,000		$	960,000		$	1,440,000		$	1,320,000
Cost of goods sold		2,055,600			537,600			792,000			726,000
Gross margin		1,664,400			422,400			648,000			594,000
Selling and administrative expenses:
Selling expenses:		1,046,200			308,200			390,600			347,400
Administrative expenses		538,260			155,080			204,220			178,960
Total expenses		1,584,460			463,280			594,820			526,360
Net operating income (loss)	$	79,940		$	(40,880	)	$	53,180		$	67,640

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:

	Total		North Store		South Store		East Store
Selling expenses:
Sales salaries	$	311,000	$	94,000	$	113,000	$	104,000
Direct advertising		223,000		63,000		84,000		76,000
General advertising*		55,800		14,400		21,600		19,800
Store rent		336,000		97,000		132,000		107,000
Depreciation of store fixtures		36,400		11,800		12,000		12,600
Delivery salaries		57,000		19,000		19,000		19,000
Depreciation of delivery equipment		27,000		9,000		9,000		9,000
Total selling expenses	$	1,046,200	$	308,200	$	390,600	$	347,400

*Allocated on the basis of sales dollars.

	Total		North Store		South Store		East Store
Administrative expenses:
Store management salaries	$	106,000	$	33,000	$	42,000	$	31,000
General office salaries*		74,400		19,200		28,800		26,400
Insurance on fixtures and inventory		40,600		11,100		15,000		14,500
Utilities		142,000		43,000		52,000		47,000
Employment taxes		82,260		24,780		30,420		27,060
General office other*		93,000		24,000		36,000		33,000
Total administrative expenses	$	538,260	$	155,080	$	204,220	$	178,960

*Allocated on the basis of sales dollars.

b.	The lease on the building housing the North Store can be broken with no penalty.
c.	The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.
d.	The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $18,200 per quarter. The general manager of the North Store would be retained at her normal salary of $19,200 per quarter. All other employees in the store would be discharged.
e.	The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This persons salary is $16,000 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.
f.	The companys employment taxes are 15% of salaries.
g.	One-third of the insurance in the North Store is on the stores fixtures.
h.	The General office salaries and General officeother relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This persons compensation is $9,600 per quarter.

Required:
1.	Prepare a schedule showing the change in revenues and expenses and the impact on the companys overall net operating income that would result if the North Store were closed. (Any losses/ reductions should be indicated by a minus sign.)