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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., operates three stores in a large metropoliltan area. A segmented absorption costing income statement for the company for the last quarter is glven below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North Store South Store East Store Total Sales Cost of goods sold Gross margin Selling and administrative expenses i 3,400,000 $740,000 $1,360,000 $1,300,000 1.870-000 420,000 735,000715,000 3S 1,530,000 320,000 000625,000 585,000 Selling expenses Administrative expenses 825,000 235,400 403,000110136 317,000 272,600 00156,900 Total expenses Net operating income (loss) 473,900408 700 $ 302,000 $(25,400) 151,100 176,300 1,228,000 345,400 47 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 North Total Store StoreStore South East Selling expensess Sales salaries Direct advertising General advertining" Store rent Depreciation of store fixtures $220,600 64,500 79,400 $ 76,700 76,000 52,000 51,000 11,100 20,400 19,500 320,000 89,000 124,000 107,000 6,4006.600 183,000 18,0005,000

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