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

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Northern Stores is a retailer in the upper Midwest. The most recent monthly income statement for Northern Stores is given below: Total Sales Variable expenses Contribution margin Common fixed expenses Net operating income Store Store II 500,000 2,000,000 300,000 1,000,000 200,000 1,000,000 350,000 500,000 (150,000) 500,000 2,500,000 1,300,000 1,200,000 850,000 350,000 Northern is considering closing Store I. The closing of Store I would result in a 10% decrease in sales in Store II. None of the fixed costs would be saved if Store 1 were shut down. In other words, total company fixed costs would remain the same if Store 1 were shut down. Required: Does closing Store I increase or decrease total operating income? Common fixed expenses Net operating income 350,000 (150,000) 500,000 500,000 850,000 350,000 Northern is considering closing Store I. The closing of Store I would result in a 10% decrease in sales in Store II. None of the fixed costs would be saved if Store I were shut down. In other words, total company fixed costs would remain the same if Store I were shut down. Required: Does closing Store I increase or decrease total operating income? Box #1: Specify if the closing store I will increase" or "decrease" operating income. Box #2: Enter the amount (S dollar value) of the increase or decrease in operating income

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