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 glven below: The North Store has consistently shown losses over the past two years, so management is considering closing this store. a. A detalled breakdown of the selling and administrative expenses shown above is as follows: b. The North Store's rental agreement can be broken with no penalty. c. The North Store's flxtures would be transferred to the other two stores if it were closed. d. The North Store's general manager would be transferred to another position In the company if it were closed. She would fill a position that otherwise would have required hiring a new employee at a salary of \$11,440 per quartec. The general manager of the North Store would continue to earn her normal salary of $12,480 per quarter. All other managers and employees in the North Store would be discharged. e. The company has one dellvery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person's salary is $4,160 per quarter. The dellvery equipment would be distributed to the other stores. The equipment does not wear out through use. t. The company pays employment taxes equal to 15% of their employees' salarles. 9. One-third of the North Store's Insurance relates to its fixtures. 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 workload. This person's compensation is $6,240 per quarter. Required: 1. How much employee salarles 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 financlal advantage (disadvantage) of closing the North Store? 4. Assuming the North Store's floor space can't be subleased, would you recommend closing the North Store? 5. Assume the North Store's floor space can't be subleased. However, let's introduce three more assumptions. First, if the North Store were closed, one-fourth of its sales would transfer to the East Store due to strong customer loyalty to Superior Markets. Second, the East Store has enough capacity to handle the Increased sales that would arise from closing the North Store. Third, the Increased sales in the East Store would yleld the same gross margin as a percentage of sales as present sales in the East Store. Given these new assumptions, what is the financlal advantage (disadvantage) of closing the North Store