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

Total Sales: 4,190,000

Total Variable Expenses: 1,283,000

Total Contribution Margin: 2,907,000

Total Fixed Expenses: 2,230,000

Total Net Operating Income (loss): 677,000

Hardware Sales: 3,130,000

Hardware Variable Expenses: 863,000

Hardware Contribution Margin: 2,267,000

Hardware Fixed Expenses: 1,400,000

Hardware Net Operating Income (loss): 867,000

Linens Sales: 1,060,000

Linens Variable Expenses: 420,000

Linens Contribution Margin: 640,000

Linens Fixed Expenses: 830,000

Linens Net Operating Income (loss): -190,000

A study indicates that $377,000 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 19% 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?