Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows:

		Department
	Total	Hardware	Linens
Sales	$4,000,000	$3,000,000	$1,000,000
Variable expenses	1,300,000	900,000	400,000
Contribution margin	2,700,000	2,100,000	600,000
Fixed expenses	2,200,000	1,400,000	800,000
Net operating income (loss)	$500,000	$700,000	$(200,000)

A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department.

Required:

If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole? (Input the amount as positive value. Omit the "$" sign in your response.)

(Click to select)DecreaseIncrease in profits for the company as a whole

$