2. Dropping or Retaining a Segments Foot Step company, a retailing of woman shoes has two departments, Sport Shoes and Casual Shoes. The company's most recent monthly contribution format income statements follows: Department Total Sport Shoes Casual Shoes Sales $ 8.000.000 $6.000.000 $2.000.000 Variable Expenses $ 2.600.000 $ 1.800.000 $ 800.000 Contribution Margin $ 5.400.000 $ 4.200.000 $ 1.200.000 Fixed Expenses $ 4.400.000 $ 2.800.000 $ 1.600.000 Net Operating Income (Loss) $ 1.000.000 $ 1.400.000 $ (400.000) A management indicates that $ 680.000 of the fixed expenses being charged to Casual Shoes are sunk costs or allocated costs that will continue even is the Casual Shoes is dropped. In addition, the elimination of casual shoes department will result in a 10% decrease in the sales of the Sport shies department Required: If the Casual Shoes Department is dropped, what will be the effect on the net operating income of the company as a whole