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 closed, $25\%$ of its traceable fixed expenses would

continue to be incurred. Also, the closing of Store I would result in a $20\%$ 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.