The Kelso Compay has two divisions - eastern and western. The divisions have the following revenues and expenses:

Eastern Western

Sales 450,000 400,000

variable expenses 225,000 150,000

Traceable fixed expenses 130,000 105,000

allocated common corporate expenses 120,000 95,000

net operating income (25,000) 50,000

Management of Kelso is considering the elimination of the Eastern division. If the Eastern divsion were eliminated, then its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of the eastern division would result in an overall company net operating income (loss) of

A. 50,000

B. (70,000)

C. 25,000

D. (75,000)