Superior Markets, Incorporated, operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:
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:
tableTotal,North Store,South Store East Store,Selling expenses:,,,,Sales salaries,$$$