Superior Markets Ltd operates three stores in London. A segmented prot statement for the company for last year is given below: Profit statement for the year ended 30 September 2020 Total North South East Store Store Store () () () () Sales 3,000,000 720,000 1,200,000 1,080,000 Cost of goods sold 1,657,200 403,200 660,000 594,000 Gross margin 1,342,800 316,800 540,000 486,000 Selling and admin expenses 1,206,600 344,000 465,900 396,700 Net operating prot (loss) 136,200 (27,200) 74,100 89,300 The North store has consistently shown losses over the past two years, and the company has requested you to make a recommendation as to whether the store should be closed. The following information relating to Selling and Admin expenses of the North store are given below: . The rent is 100,000, and the lease can be broken with no penalty. The store manager, Maria, whose salary is 30,000 per year, would be retained and transferred to another position in the company. She would be lling a position that would othenNise be filled by hiring a new employee at a salary of 25,000 per year. Maria would be retained at a salary of 25,000 per year. All sales staff, with total salary of 70,000 per year, of the North store would be made redundant, with no compensation. The company has one delivery crew that serves all three stores. If the North store were closed, all delivery crew members and equipment would be distributed to the other stores. Delivery salaries, allocated on the basis of sales, in the North store are 40,000 per year. Depreciation on delivery equipment amounts to 8,000 per year. Depreciation on xtures being used in the North store amounts to 8,000. The stores\" xtures would be transferred to the other two stores if the North store were closed. Insurance on stores' xtures and inventory amounts to 18,000 per year, and one-third of the insurance is on the stores' fixtures. General office expenses of 30,000, relating to the overall management of Superior Markets, are allocated on the basis of sales. Required: (i) Using relevant costs, what recommendation would you make to the management of Superior Markets? Make appropriate assumption(s) and show your computations. (ii) Assume that if the North store were closed, at least one-fourth of its sales would transfer to the East store, due to strong customer loyalty to Superior Markets. The East store has ample capacity to handle the increased sales. You may assume that the increased sales in the East store would yield the same gross margin rate as present sales in that store. What effect would these factors have on your recommendation concerning the North store? Show your computations to support your answer. (6 marks) (iii) What qualitative factors should Superior Markets consider in determining whether they should discontinue the North store