Company is a retailer Income statement for month of December 2019 is given below (in ):

Items	Store A	Store B	Total
Sales	1,300,000	800,000	2,100,000
Variable costs	(882,000)	(378,000)	(1,260,000)
Contribution margin	418,000	422,000	840,000
Traceable fixed costs	(231,000)	(189,000)	(420,000)
Segment margin	187,000	233,000	420,000
Common fixed costs	(210,000)	(140,000)	(350,000)
Net operating income	(23,000)	93,000	70,000

Company is considering to close Store A. If Store A is closed, one-third of its traceable fixed expenses would continue. Also, the closing of Store A would result in a 35% decrease in sales in Store B. Company allocates common fixed expenses on the basis of sales and none of these costs would be saved if a store were shut down.

Required:

Basing on the analysis of the overall increase or decrease in the net operating income of Company, give recommendations to your CEO to close Store A or keep it operational. Justify your assessment with any calculations needed and give recommendations on the rational grounds.