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Kelowna Stores is a retailer in British Columbia. The most recent monthly income statement for Northern Stores is given below: Total Store 1 Store Sales

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Kelowna Stores is a retailer in British Columbia. The most recent monthly income statement for Northern Stores is given below: Total Store 1 Store Sales $2,100,000 $1,300,000 $800,000 less variable expense 1,260,000 $882,000 378,000 Contribution margin $840,000 $418,000 $422,000 Less traceable fixed expense 420,000 231,000 189,000 Segment margin $420,000 $187.000 $233,000 Less common foxed expense 350,000 210,000 140,000 Operating Income $70,000 $23,000 $93,000 Styles Edi Kelowna is considering closing Store l. If Storel is closed, one fourth of its traceable foed expenses would continue to be incurred. Also, the closing of Store I would result in a 20% decrease in sales in Storell, Northern allocates common fixed expenses on the basis of sales dollars and none of these costs would be saved if a store were shut down. Required: Compute the overall increase or decrease in the operating income of Northern Stores if Storel is dosed

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