Northern Stores is a retailer in British Columbia. The most recent monthly income statement for Northern Stores is given below:

	Total	Store 1	Store II
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 fixed expense	350,000	210,000	140,000
Operating Income (Loss)	$70,000	($23,000)	$93,000

Northern is considering closing Store I. 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 20%increase 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: a) Compute the overall increase or decrease in the operating income of Northern Stores if Store I is closed.(6 Marks)

b) Give two qualitative considerations that might be made in deciding whether to close the store.(2 Marks)