Exercise 12-15 Dropping or Retaining a Segment [LO2] Boyles Home Center, a retailing company, has two departments, Bath and Kitchen. The companys most recent monthly contribution format income statement follows: Department . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . .Bath. . . . . .Kitchen Sales . . . . . . . . . . . . . . . . . .$4,080,000 . . . $1,040,000 . . . $3,040,000 Variable expenses . . . . . . . . . 1,264,000 . . . . . .408,000 . . . . . 856,000 Contribution margin . . . . . . . . .2,816,000 . . . . 632,000 . . . . . 2,184,000 Fixed expenses . . . . . . . . . . . 2,200,000 . . . . 810,000 . . . . . 1,390,000 Net operating income (loss) . . . $616,000 . . . . .$(178,000) . . . . .$794,000 A study indicates that $372,000 of the fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 16% decrease in the sales of the Kitchen Department. Required: If the Bath Department is dropped, what will be the effect on the net operating income of the company as a whole? (Input the amount as a positive value. Omit the "$" sign in your response.) Net operating income = $