The Kelsh Company Has Two Divisions--North and South

Multiple Choice

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