Green Industries Has Two Sales Territories-North and South

Multiple Choice

Green Industries has two sales territories-North and South. Financial information for the two territories is presented below: Because the company is in a start-up stage, corporate management feels that the North sales territory is creating too much of a cash drain on the company and it should be eliminated. If the North territory is discontinued, one sales manager (whose salary is $40,000 per year) will be relocated to the South territory. By how much would Green's income change if the North territory is eliminated?

A) increase by $88,000
B) increase by $48,000
C) decrease by $267,000
D) decrease by $227,000