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3. Dropping or Retaining a Segment. A retailing company has two segments: Hardware and Linens. The company's most recently monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) TOTAL $4,000,000 1,300,000 2,700,000 2,200,000 $500,000 Hardware $3,000,000 900,000 2,100,000 1,400,000 $700,000 Linens $1,000,000 400,000 600,000 800,000 ($200,000) A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the contribution margin of the Hardware Department. If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole