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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			North Store			South Store			East Store
Sales	$	4,200,000		$	840,000		$	1,680,000		$	1,680,000
Cost of goods sold		2,310,000			500,000			886,000			924,000
Gross margin		1,890,000			340,000			794,000			756,000
Selling and administrative expenses:
Selling expenses:		841,000			243,400			321,000			276,600
Administrative expenses		443,000			118,000			168,900			156,100
Total expenses		1,284,000			361,400			489,900			432,700
Net operating income (loss)	$	606,000		$	(21,400	)	$	304,100		$	323,300

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 is as follows:

	Total		North Store		South Store		East Store
Selling expenses:
Sales salaries	$	256,800	$	68,600	$	78,200	$	110,000
Direct advertising		177,000		63,000		84,000		30,000
General advertising*		63,000		12,600		25,200		25,200
Store rent		285,000		81,000		114,000		90,000
Depreciation of store fixtures		22,000		5,800		7,200		9,000
Delivery salaries		24,600		8,200		8,200		8,200
Depreciation of delivery equipment		12,600		4,200		4,200		4,200
Total selling expenses	$	841,000	$	243,400	$	321,000	$	276,600

*Allocated on the basis of sales dollars.

	Total		North Store		South Store		East Store
Administrative expenses:
Store management salaries	$	88,000	$	27,000	$	36,000	$	25,000
General office salaries*		63,000		12,600		25,200		25,200
Insurance on fixtures and inventory		37,000		11,100		15,000		10,900
Utilities		85,140		28,840		28,560		27,740
Employment taxes		64,860		17,460		22,140		25,260
General office

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