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 Store Total Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total expenses Net operating income (loss) $4,400,000 880,000 $1.760,000 $1,760,000 2.420.000 1,980,000 927,000 833,000 968,000 355,000 845,000 453,000 245,400 120,000 365.400 322,000 171,900 277,600 161,100 438,700 $ 682,000 (10,400) $ 339,100 353,300 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 North Store South Store East Store Total Selling expenses Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total selling expenses $ 243,600 65,400 $ 73,400 104,800 28,000 26.400 96,000 9,600 8,400 4.400 $ 845,000 245,400 322,000 277,600 179,000 66,000 295,000 23,000 25,200 65,000 13,200 83,000 6,000 8.400 4.400 86,000 26.400 116,000 7.400 8.400 4.400