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 East Total Store Sales Cost of goods sold Gross margin Selling and administrative expenses: $4,000,000 $840,000 $1,600,000 $1,560,000 2,200,000 495,000 345, 000 847,000 753,000 858,000 702,000 1, 800,000 275,600 151,100 426,700 $530,000 $(12,400) 267,100 275,300 320,000 165,900 485,900 Selling expenses Administrative expenses 433,000 1,270,000 837,000 241,400 116,000 357,400 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