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

Total Store I Store II

Sales$2,100,000$1,300,000$800,000

Variable expenses1,260,000882,000378,000

Contribution margin840,000418,000422,000

Traceable fixed expenses420,000231,000189,000

Segment margin420,000187,000233,000

Common fixed expenses350,000210,000140,000

Net operating income$70,000$(23,000)$93,000

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