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 East Store $4,700,000 $940,000 $1,880,000 $1,880,000 North Store South Store Tota Sales Cost of goods sold Gross margin Selling and administrative expenses: 2,585,000 580,000 971,000 1,034,000 2,115,000 360,000 909,000 846,000 Selling expenses Administrative expenses 851,000 248,400 468,000 123,000 323,500 176,400 279,100 168,600 Total expenses 1,319,000 371,400 499,900 447,700 Net operating income (loss) $ 796,000 (11,400) 409,100 $ 398,300 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 $ 252,800 S 60,600 S 80,200 $ 112,000 25,000 70,500 14,100 28,200 28,200 90,000 7,700 10,500 8,700 4,700 68,000 89,000 86,000 105,000 8,700 182,000 281,000 24,500 26,100 14,100 6,300 8,700 4,700 4,700 Total selling expenses $851,000 $248,400 $323,500 $279,100