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: Superior Markets, Incorporated Income Statement For the Quarter Ended September 30 Total Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income (loss) North Store $ 3,060,000 1,690,344 $ 734,400 South Store $ 1,224,000 East Store $ 1,101,600 411,264 673,200 605,880 1,369,656 323,136 550,800 495,720 833,340 236,028 321,300 276,012 390,660 1,224,000 108,120 153,918 128,622 344,148 475,218 404,634 $ 145,656 $ (21,012) $ 75,582 $ 91,086 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 that are shown above is as follows: