Superior Markets, Incorporated, operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: The Nonth 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 avallable for your use: a. The breakdown of the selling and administrative expenses that are shown above is as follows: a. The breakdown of the selling and administrative expenses that are shown above is as follows: Required: 1. How much employee salaries will the company avold if it closes the North Store? 2. How much employment taxes will the company avoid if it closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4. Assuming that the North Store's floor space can't be subleased, would you recommend closing the North Store? 5. Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Stoce, due to strong customer loyality to Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store? Complete this quistion by entering your answers in the tabs below. Haw much employee salaries will the company avoid if it closes the North Store? b. The leage on the buliding housing the North Store can be broken with no penalty c. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed. d. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $11,000 per quanter. The general manager of the North $ tore would continue to earn her normal salary of $12.000 per quarter. All other managers and employees in the North store would be discharged e. The company has one detivery crew that serves all three storet One delivery person could be discharged if the North Store were ciosed This person's salary is $4,000 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete. t. The company pays employment taxes equal to 15% of their employees' salaries 9. Onc-third of the insurance in the North Store is on the store's foxtures. h. The "General office salarles" and "General office-other" relate to the overall management of Superior Markets, Incorporated If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workioad. This person's compensation is $6,000 per quarter. Required: 1 How much employee salaries will the company avoid if it closes the North Store? 2. How much employment taxes will the company avoid if it closes the North Store? 3. What is the financial advantage (disadvantage) of closing the North Store? 4. Assuming that the North Store's foor space can't be subleased, would you recommend closing the North Store? 5. Assume that the North Store's fioor space can't be subleased. However, let's introduce three mare assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong customer Ioyaly to Superior Morkets. Second, assume that the East Store has enough capacify to handle the increased ssies that would arlse