Elora Hotel's restaurant provides 3 services namely, breakfast, lunch, and dinner services. The accountant has prepared a segmented contribution margin income statement for the past year based on the 3-meal periods, as shown below. The Hotel manager is concerned about the lunch service, as it has been showing a loss for the past few years.

	Breakfast			Lunch				Dinner	Total
Sales	$	419,000		$	740,000		$	426,000	$	1,585,000
Less: Variable expenses		241,000			287,000			257,000		785,000
Contribution margin		178,000			453,000			169,000		800,000
Less: Fixed expenses		118,000			508,000			107,000		733,000
Net operating income (loss)	$	60,000		$	(55,000)		$	62,000	$	67,000

Required:

A study indicates that 40% of the fixed costs of lunch services are common costs, so will continue even if the Lunch service is dropped. In addition, the elimination of the Lunch service will result in a 10% increase in the sales of the Breakfast service and a 15% increase in Dinner service. What will be effect on Net operating income if lunch service is dropped,