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 $3,700,000 $800,000 $1,480,000 $1,420,000 781,000 North Store South Store Total Sales Cost of goods sold Gross margin Selling and administrative expenses 2,035,000 460,000 794,000 1,665,000 340,000 686.000 639,000 318,500 161,400 274,100 143,600 Selling expenses 831,000 238,400 418.000 Administrative expenses Total expenses Net operating income (loss) 113,000 1,249,000 351,400 479,900 417,700 S 416,000 (11,400) 206,100 221,300 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The whether the store should be closed or kept open. The following additional information is available for your use company has asked you to make a recommendation as to a. The breakdown of the selling and administrative expenses is as follows North Store South Store as Total Store Selling expenses Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment $214,800 $ 59,700 $ 72,200 $ 82,900 35,000 58.000 79,000 172,000 55,500 2,000 22,200 21,300 335,000 92,000 127,000 116,000 7,500 7,700 3,700 19,500 23,100 11,100 5,300 7,700 3,700 6,700 7,700 3,700 Total selling expenses $ 831,000 $238,400 $318,500 $274,100