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

TotalStore IStore IISales$2,100,000$1,300,000$800,000Less variable expenses1,300,000942,000358,000Contribution margin800,000358,000442,000Less traceable fixed expenses300,000111,000189,000Segment margin500,000247,000253,000Less common fixed expenses500,000250,000250,000Net income (loss)$0($3,000)$3,000

Northern is considering closing Store I. If Store I closed, one-half of its traceable fixed expenses would continue to be incurred. Also, the closing of Store I would result in a 10% decrease in contribution margin in Store II. Northern allocates common fixed expenses based on 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 closed.