Home Sweet Home, a garden furniture company, has two departments: Decks and Pergolas. A recent monthly income statement for the company follows:

	Department
	Decks			Pergolas				Total
Sales	$	3,000,000		$	1,000,000			$	4,000,000
Less: Variable expenses		900,000			400,000				1,300,000
Contribution margin		2,100,000			600,000				2,700,000
Less: Fixed expenses		1,400,000			800,000				2,200,000
Net operating income (loss)	$	700,000		$	(200,000	)		$	500,000

A study indicates that $240,000 of the fixed expenses being charged to pergolas are sunk costs or allocated costs that will continue even if the pergola department is dropped. In addition, the elimination of the pergola department will result in a 20% decrease in the sales of the decks department.

Required: If the pergola department is dropped, what will be the effect on the net operating income of the company as a whole?

Net operating income _____ by _______