Sophie Company is a retailer in Nova Scotia operating three (3) locations; Truro (T), Windsor (W), and Yarmouth (Y). The most recent monthly income statement for Sophie is given below: (Amounts are small for TEST purposes.)

T W Y Total Sales $ 1,300 $ 500 $ 800 $ 2,600 Variable Expense 880 230 320 1,430 Contribution Margin 420 270 480 1,170 Traceable Fixed Expense 250 150 200 600 Allocated Common Fixed Exp 210 100 140 450 Operating Income (Loss) $ (40) $ 20 $140 $120

Due to higher rent costs the company is considering closing the Truro store.

If Truro store were closed, 30% of its traceable fixed expenses would continue to be incurred. Also, the closing of Truro would result in a 45% increase in sales in both the other stores.

Required: Should Sophie close the Truro store? Support your answer by determining the overall increase or decrease in the operating income of the company if the Truro store is closed (Show your work).