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 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: Total selling expenses "Allocated on the basis of sales dollars. b. The lease on the bullding housing the North Store can be broken with no penalty c. The futures being used in the North Store would be transterred to the other two stores it the North Store were closed: d. The general manaoer of the North Store would be retained and transferted to another position in the company if the North Store were closed. She would be flling a position that would otherwise be filled by hiring a new employee at a salary of $11,880 per quarter. The general manager of the North Store would continue to eam her nomal salary of 512,960 per quarter. All other managers and employees in the North store would be discharged e. The company has one delvery crew that serves all three stores. One delivery person could be discharged if the North 5 tore were closed. This person's salary is $4.320 per quartec. The delivery equipment would be distributed to the other stores. The equipment does not wear ogt through use, but does eventually become obsolete. f. The company pays empioyment taxes equal to 15% of their employees' salaries. 9. One-third of the insurance in the North Store is on the store's fixtures h. The "General office solaries" and "General office-other" relate to the overall management of Superior Markets, incomorated. it the North Store were ciosed, one person in the general office could be discharged because of the decrease in overal workload. This person's compensation is 56,480 per quarter. Required: L. How much employee salaries will the company awoid if it closes the North Store? 2. How much employment towes wilt the company avoid it it closes the North Store? 3. What is the financial advantaos Idisadvantaoel of closing the North Store? Required: 1. How much employee salaries will the company avoid if it closes the North Store? 2. How much employment tawes will the company avold 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 spoce can' be subleased. Howevec, lots introduce three more assumptions. First, assume that the North Store were ciosed, one-fourth of its sales would transfer to the East Store, due to strong customer loyaity to Superior Markets. Second, assume that the East Store has enough capacity to handie 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? 8) Answer is not complete. Complete this question by entering your answers in the tabs below. Assume that the North Store's floor space cant be subleased. However, let's introduce three more assumptions. First, assume. that if the North styre were closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty 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 peroentoge of saies as present sales in the East store. Glven these new assumptions, what is the financial advantage (disadvantage) of ciosing the North Store? (Enter any "disadvantages" as a negative value.)