Northern Stores is a retailer in the upper Midwest. The most recent monthly income statement for Northern Stores is given below:

	Total	Store I	Store II
Sales	$2,500,000	$1,200,000	$1300,000
Less: Variable Expenses	1,400,000	900,000	500,000
Contribution Margin	1,100,000	300,000	800,000
Less: Traceable fixed expenses	420,000	280,000	140,000
Segment margin	680,000	20,000	660,000
Less: Common fixed expenses	320,000	95,000	225,000
operating Income	$360,000	$(75,000)	$435,000

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 25% decrease in contribution margin 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:

Compute the overall increase or decrease in the net income of Northern Stores if Store I is closed.