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Superior Markets, Inc., 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, Inc. Income Statement For the Quarter Ended September 30 Total 2,155,200 North Store South Store East Store Sales Cost of goods sold $3,900,000 $1,020,000 $1,500,000 $1,380,000 571,200 825,000 759,000 Gross margin 1,744,800 448,800 675,000 621,000 Selling and administrative expenses Selling expenses Administrative expenses 1,103,500 574,200 327,400 166,660 409,500 216,400 366,600 191,140 Total expenses 1,677,700 494,060 625,900 557,740 Net operating income (loss) S 67,100 S (45,260) 49,100 S 63,260 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 is as follows North Store South Store as Total Store Selling expenses Sales salaries Direct advertising General advertising Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment $ 329,000 $100,000 $119,000 $110,000 79,000 20,700 345,000 100,000 135,000 110,000 14,400 22,000 10,500 232,000 58,500 66,000 15,300 87,000 22,500 41,500 66,000 31,500 13,600 22,000 10,500 13,500 22,000 10,500 Total selling expenses $1,103,500 $327,400 $409,500 $366,600 Allocated on the basis of sales dollars