Superior Markets, Inc., operates three stores in a large metropolitan area. Asegmented 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 South East Total Store Store Store $5,000,000 $960,000 $2,000,000 $2,040,000 Sales Cost of goods sold 2,750,000 600,000 1,028,000 1,122,000 Gross margin 2,250,000 360,000 972,000 918,000 Selling and administrative expenses: 251,400 325,000 280,600 126,000 180,900 176,100 Selling expenses: 857,000 483,000 Administrative expenses Total expenses 1,340,000 377,400 505,900 456,700 Net operating income (loss) 910,000 (17,400) 466,100 461,300 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: Selling expenses: $246,000 64,400 73,000 600 Sales salaries 185,000 Direct advertising 1,000 92,000 22,000 General advertising 75,000 14,400 30,000 30,600 283,000 Store rent 81,000 108,000 94,000 Depreciation of store fixtures 26,000 6,600 8,000 11,400 27,000 Delivery salaries 9,000 9,000 9,000 Depreciation of delivery equipment 15,000 5,000 5,000 5,000 $857,000 $251,400 $325,000 $280,600 Total selling expenses .Allocated on the basis of sales dollars