Northern Stores is a retailer in British Columbia. The most recent monthly income statement for Northern Stores is given below " Sales Variable expenses faceable fixed expenses Common fixed expenses Total $1,350,000 Store I Store il $700,000 $650,000 750,000 500,000 250,000 210,000 140,000 70,000 270,000 103,000 167,000 Operating income $120,000 $43,000 $163,000 Northern is considering closing Store 1. If Store I is closed, one-fourth of its traceable fixed expenses would continue to be incurred. Also, the closing of Store I would result in a 15% decrease in sales in Store II. 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: 1. Compute the overall increase or decrease in the operating income of Northern Stores if Store I is closed. (4 Lost Contribution Margin: Loss in contribution margin: Store 1 contribution margin lost Taceable expenses saved or avoided: Traceable fixed expenses. (200,000) 105.000