6. Boyle's Home Center has two departments, Bath and Kitchen. The most recent income statement for the company follows: Department Kitchen Total Bath Sales Less: Variable expenses Contribution Marein Less: Fixed expenses Net operating income (loss) $5.000.000 1.900.000 3.100.000 2.700.000 $ 400,000 $1.000.000 300.000 700.000 900.000 $ (200,000) $4.000.000 1.600.000 2.400.000 1.800.000 $ 600.000 A study indicates that $370,000 of the fixed expenses being charged to the Bath Department are either sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 10% decrease in the sales of the Kitchen Department. If the Bath Department is discontinued, what will be the effect (direction and amount) on the net operating income of the company as a whole