Condensed monthly operating income data for Cosmo Inc. for November is presented below. Additional information regarding Cosmo's operations follows the statement. Total Mall Store Town Store Sales $ 200,000 $ 80,000 $ 120,000 Variable expenses 116,000 32,000 84,000 Contribution margin 84,000 48,000 36,000 Traceable fixed expenses 60,000 20,000 40,000 Store segment margin 24,000 28,000 (4,000) Common fixed expenses 10,000 4,000 6,000 Net operating income (loss) $ 14,000 $ 24,000 $ (10,000)

Cosmo allocates common fixed expenses to each store on the basis of sales dollars. Management estimates that closing the Town Store would result in a ten percent decrease in Mall Store sales, The operating results for November are representative of all months. A decision by Cosmo Inc. to close the Town Store would result in a monthly increase (decrease) in Cosmo's operating income of:

Answer $4000 $(10,800) $(800) $(6,000)