PW monthly operating income data for Sainsbury Inc. for Additional information regarding Korbin's operations May follows: follows: Additional information regarding Sainsbury's operations follows: ? One-fourth of each store's direct fixed costs would continue if either store is closed. ? Sainsbury allocates common fixed costs to each store on the basis of sales dollars. ? Management estimates that closing the Suburban Store would result in a 10% decrease in the Urban Store's sales, while closing the Urban Store would not affect the Suburban Store's sales. ? The operating results for May are representative of all months. Q: A decision by Sainsbury to close the Suburban Store would result in a monthly increase (decrease) in Sainsbury's operating income of

Urban Suburban Store Store Total Sales $80,000 $120,000 $200,000 Variable costs 32.000 84,000 116,000 Contribution margin $48,000 $ 36,000 $ 84,000 Direct fixed costs 20.000 40,000 60,000 Store segment $28,000 $ (4,000) $ 24,000 margin Common fixed cost 4.000 6.000 10.000 Operating income $24,000 $ (10,000) $ 14,000