Dairy Delights operates with three departments. The owner–manager wants to close Department B because it continually shows a loss. During the past year ending 30 June 2017, the departmental performances were as follows:

		Department A				Department B				Department C
Sales Cost of sales			$468 000  280 000				$188 000 140 000				$280 000  182 000
Gross profit Direct expenses Indirect expenses			188 000 (46 000)  (82 000)				48 000 (24 000)   (32 760)				98 000 (28 100)  (49 140)
Profit (loss)			$ 60 000				$  (8 760)				$  20 760

In analysing these results, the accountant determines that insurance expense ($18 000) and travel expense ($7000) are the only indirect expenses that can be avoided if Department B is closed. All direct expenses are avoidable.

Required

What would the effect be on the store’s overall profits of closing down Department B?