Eastern Clothing has two locations. The most recent income statement is as follows:

(in $millions)	Ansonville	Bampton	Total
Sales	40	10	50
Variable Costs	22	3	25
Contribution Margin	18	7	25
Fixed Costs	12	12	24
Operating Income	6	(5)	1

The $12 in Fixed costs for Bampton include $4 in corporate costs these costs can not be avoided if this location is closed. The rest of the fixed costs can be avoided if this location is closed, including $3 in depreciation for equipment - the equipment has no disposal value, and will result on a loss on disposal of $2 when disposed.

Eastern is considering closing its Bampton store. If Bampton is closed, the following will likely occur:

1. Sales at Ansonville will increase by 10%
2. Ansonville will have to rent more space this will increase rent from $3 to $4 per year

Required:

1. Compute net income if Eastern Stores closes the Bampton location.

2. What other consideration should be made if closing this store?