The Kelsh Company has two divisions$--$North and South. The divisions have the following revenues and

expenses:

North South

Sales $$900,000$ $$800,000$

Variable expenses $450,000300,000$

Traceable fixed expenses $260,000210,000$

Allocated common corporate expenses $240,000190,000$

Net operating income $($loss$)$ $$(50,000)$ $$100,000$

Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated,

its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.

Given these data, the elimination of North Division would result in an overall company net operating

income of:

A$)$ $$100,000.$

B$)$ $$150,000.$

C$)$ $$(140,000).$

D$)$ $$50,000.$