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 South Store Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income (loss) North Store $ 3,420,000 1,889,208 $ 820,800 $ 1,368,000 459,648 752,400 1,530,792 361,152 615,600 931,380 263,796 359,100 436,620 120,840 172,026 1,368,000 384,636 531,126 $ 84,474 $ 162,792 $ (23,484) 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: