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: $3,800,000 $760,000 $1,520,000 $1,520,000 836,000 684,000 2,090,000 1,710,000 420,000 340,000 834,000 686,000 Selling expenses Administrative expenses 274,600 146,100 420,700 $454,000 $ (13,400) 204,100 263,300 833,000 239,400 114,000 353,400 319,000 162,900 481,900 423,000 1,256,000 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