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

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 $4,250,000 $3, 150,000 $1,100,000 Variable expenses 1.280.000 874.000 406.000 2,970,000 2,276,000 694,000 Contribution margin Fixed expenses 2,350,000 1,470,000 880,000 620,000 806,000 (186,000) Net operating income (loss) A study indicates that $376,000 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 12% 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? in net operating income