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 North Store has consistently shown losses over the post two years. For this resson, management is giving consideration to closing the store. The compony 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: 0. The breakdown of the selling and administrative expenses that are shown above is as follows: b. The lesse on the building housing the North Store con 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 mangger of the North Store would be retained and transferred to onother position in the compony if the North Store were closed. She would be filling a position that would otherwise be filled by hiring o new employee at a salary of $13,860 per quarter. The general manager of the North Store would continue to earn her normal salary of $15,120 per quarter. All other managers and employees in the North store would be discharged. e. The compony has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person's salary is $5,040 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. f. The company pays employment taxes equal to 15% of their employees' salaries. g. One-third of the insurance in the North Store is on the store's fixtures. h. The "General office salaries" 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 decreose in overall worklosd. This person's compensation is $7,560 per quarter. Required: 1. How much employee salaries will the company ovoid if it closes the North Store? 2. How much employment toxes will the compony ovoid 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 spoce can't be sublessed, would you recommend closing the North Store? 5. Assume that the North Store's floor space can't be sublessed. 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 Eost Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enough capacity to handle the incressed sales that would arise from closing the North Store. Third, assume that the incressed sales in the East Store would yield the same gross margin os 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