O'Neill, Incorporated's segmented income statement for the most recent month is given below.

	Total Company	Store A	Store B
Sales	$477,000	$188,000	$289,000
Variable expenses	320,180	141,000	179,180
Contribution margin	156,820	47,000	109,820
Traceable fixed expenses	109,200	36,600	72,600
Segment margin	47,620	$10,400	$37,220
Common fixed expenses	40,500
Net operating income	$7,120

For each of the following questions, refer back to the above original data. A proposal has been made that will lower variable expenses in Store A to 62% of sales. However, this reduction can only be accomplished by an increase in Store A's traceable fixed expenses of $8,550. If this proposal is implemented and sales remain constant, overall company net operating income should:

rev: 07_14_2016_QC_CS-55575, 10_06_2016_QC_CS-64567, Noreen 4e Rechecks 2017-24-03

remains the same

decrease by $8,550

increase by $15,890

decrease by $15,890