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Use info below to answer all subparts of question Che 7 Superior Markets, Inc.,, operates three stores in a large metropolitan area. A segmented absorption
Use info below to answer all subparts of question Che 7 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 10 points Superior Markets, Ine. Income Statement For the Quarter Ended September 30 South Store Skipped Total Store Sales Cost of goods sold Gross margin Selling and adninistrative expenses $4,100,000 $860,000 $1.640,000 $1,600,000 80 000 2,255,000 515,000 860,000 845,000 345,000 Print Selling expenses Administrative expenses 839,000242,400 438,000 117,000 000 359,400 320,500 167,400 276,100 Total expenses Net operating income (loss) $ 568,000 4,400) 292,100 290,300 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 Nor Selling expenses: $263,400 69,600 80,600 $113,200 176,000 62,000 83,000 31,000 61,500 12,900 24,600 24,000 Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery 280,000 80,000 113,000 87,00 21,500 5,700 7,1008,700 24,300 8,100 8,100 8,100 12,300 4,100 4,1004,100 839,000 $242,400 $320,500 $276,100 equipeent Total selling expenses
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