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 $3,700,000 $800,000 $1,480,000 $1,420,000 Sales Cost of goods sold 2,035,000 460,000 794,000 781,000 Gross margin 1,665,000 340,000 686,000 639,000 Selling and administrative expenses Selling expenses: Administrative expenses 831,000 238,400 418,000 113,000 318,500 161,400 274,100 143,600 Total expenses 1,249,000 351,400 479,900 417,700 Net operating income (loss) $ 416,000 S (11,400) 206,100 S 221,300 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 $214,800 S 59,700 $ 72,200 S 82,900 35,000 55,500 12,000 22,200 21,300 172,000 58,000 79,000 335,000 19,500 23,100 11,100 92,000 27,000 116,000 6,700 5,300 7,700 3,700 7,500 7,700 3,700 7,700 3,700 Total selling expenses $831,000 $238,400 $318,500 $274,100