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Lux Company operates two stores with the following information. Store A Store B Total Sales revenue 150,000 90,000 240,000 Variable Costs 90,000 54,000 144,000 Fixed

Lux Company operates two stores with the following information.

Store A Store B Total
Sales revenue 150,000 90,000 240,000
Variable Costs 90,000 54,000 144,000
Fixed Costs (Allocated) 40,000 40,000 80,000
Income (Loss) 20,000 (4,000) 16,000

If Store B is closed, sales at Store A will increase by $30,000 and 75% of the fixed costs allocated to Store B can be avoided.

What is the increase or decrease in the company's net income if Store B is closed? If it is a decrease use a negative sign.

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